A Study On The Choice Of Chinese Manufacturing Enterprises’ Overseas Investment Entry Modes And Performance

The accelerating development of economic globalization leads more and more enterprises to the international market, and stimulates the competition in a larger scope of the market. Therefore, the rate of overseas investment of emerging companies in developing countries is catching up with that in developed ones. Especially, the overseas investment of Chinese companies has entered into an acceleration stage, and China is becoming a "going global" focus of global MNEs and local enterprises. The elements and experimental research materials, such as the growth of Chinese overseas investment, institutional environment, and great-leap-forward development of the companies, etc., have lots of merits compared with others. Theoretically, early research on the relation between entry mode choice of overseas investment market and performance shows bias in transaction cost theory, but they pay too much attention to the adverse effects of "specific assets" and "opportunism" having the efficiency of dominant MNEs’ market expansion, and thus explanation about the entry mode choice of overseas investment market is often not comprehensive enough to explain, ignoring the important coordinating role of strategic decision making and behavior under institutional environment. While the introduction of institution-based theory makes up for some limitations of transaction costs, i.e., institutional environment is considered as international strategy choice and organizational governance. In this paper, on one hand, we try to improve the related theory of transaction cost, and institutional environment; on the other hand, based on combination transaction cost perspective and institution perspective, we try to analyze entry mode choice of companies’ overseas investment and its impact on companies’ performance.Based on these theories, this study selects overseas investment samples of manufacturing listed companies in China, and adopts phased theoretical and experimental test by integrating the perspective of transaction cost and institutional base, and so on. Firstly, we intend to testify the entry mode choice of enterprise’s overseas investment market by employing multivariate logistic regression analysis in the context of transaction cost and institutional base; Secondly, we try to test the relation between entry mode choice and enterprise’s performance by using AHP from the perspective of transaction cost and institutional base. Experimental results are as following:Firstly, related assumptions about transaction cost perspective and the institutional base have been partly verified:the specific assets play a positive role in wholly-owned model, while the economic uncertainty of host country has led to an inhibited tendency of its wholly-owned model, and thus the possibility of adopting a joint venture mode is increased. In addition, the political stability of the host country also improves the possibility of selecting a wholly-owned model;Secondly, the test model based on integrating transaction cost perspective with institutional base has greatly improved the effectiveness of the strategic choice of Chinese enterprises, which is in line with the entry mode choice of overseas investment market, and has a practical significance on improvement of innovation performance with regard to China’s overseas investment.Lastly, on the whole, Chinese enterprises are still on the early stage of economic scale, and at a low level of accumulated experience on the initial stage of internationalization. The scale economy helps to promote overseas innovation performance, but the positive effects of international experience has not been reflected, while the private enterprise behave better in market expansion than state-owned enterprises do.