The Research On International Market Selection And Entry Mode Of Chinese High Speed Railway Contractors

Mature HSR technology and the support of domestic policy prompt Chinese HSR contractors to step into global markets. To explore their current market and entry mode selection amd to analyze the influnces of the related factors on the two selection are significantly instructive to the contractor’s internationalization.This research uses multiple linear regression and binomial logistic regression respectively to analyze market and entry mode selection, then selects CCECC to explore the validity of the assumptions. Main research contents and results of this study include:The market selection part. For China’s high-speed rail contractors, the probability that the target countries is selected is inversely proportional to geographic distance (GD),therefore hypothesis 1 was supported. Cultural distance (CD)is significantly negative correlation with market selection,so hypothesis 2 was tested; Institutional distance(ID) is inversely proportional to the probability, consequently, hypothesis 3 was verified. Trade links is significantly related to the probability,hence hypothesis 4 was confirmed.The entry mode parts.In terms of Chinese HSR contractors, from the point of sample data, the majority of the contractors have adopted investment mode to enter the international market. Enterprise’s choice of investment mode is associated with the degree of internationalization(DOI), hypothesis 5 was supported. Cultural distance(CD) is negatively related to the choice of investment mode, which is consistent with the original hypothesis 6. Trade links is positively related to the selection of investment mode,hence, hypothesis 8 was verified. Institutional distance(ID) is not significant in the regression therefore hypothesis 3 was not verified.The market and entry mode selection is mutually independent decision-making process. First, the geographic distance (GD) is often used to analyze and research the issues of markets elections, but rarely used by scholars in entry mode. Second, even if there are same factors (institutional distance, political stability), the impact of these factors on market selection and entry mode is also different.Lastly,when entry mode(including contract mode and investment mode) is explored,the target country must be determined, namely that the process of entry mode could not be performed until the work of market selection has been completed well. Case study. Selecting CCECC to conduct case analysis, through the contrast analysis of Chinese civil engineering group and the sample data, the results support the H1、H2、H4、H5、H8.The main contributions of the dissertation are summarized as follows.(1)entry mode concludes investment mode and contracting mode in the engineering industry, localization level is one inherent nature of entry mode.(2)Taking China’s HSR contractor as example,the reseach analyzes empirically the different factors influencing the choice of market and entry mode selection,then concludes that market and entry mode choices are independent process, whicn enriches the theory of internationalization and provides support for the contractor to go out.