Internationalization And Performance Of Chinese Mnes:Moderating Effect Of Host Country Institution And Experiential Learning

Nowadays with the development of economic globalization,many multinational companies in the world began to emerge in the international arena.Multinational enterprises established in developed countries have begun to take the lead in the international journey,and they play an important position in the development of the global economy.They rely on the inherent advantages of ownership,and then through the internal advantages and location advantages in overseas operations,the occupation of large tracts of overseas markets,and achieved good performance in overseas operations.But in recent years,more and more foreign direct investment flows have declined,while more and more companies from emerging economies began to walk on the road of rapid internationalization.Especially from the rapid development of Chinese MNEs' internationalization,which has attracted more and more attention of scholars.China's foreign direct investment flows increased year by year,cross-border mergers and acquisitions are not uncommon,but also attracted a lot of domestic and foreign business people's attention.International expansion strategy is a form of enterprise growth strategy.Chinese enterprises to implement the strategy is aimed at the pursuit of strategic resources,to seek the expansion of global market share,as well as the promotion of enterprise's own influence.As the last comer,Chinese enterprises present actively in the international market in recent years.Does the implementation of international strategy can enhance the performance of overseas business?We use overseas survival of subsidiaries of the parent company to describe overseas business performance level.Using 2001-2012 panel data of listed company in Chinese Shanghai Stock Exchange,using logit model regression analysis on the relationship between parent company internationalization and the living conditions of its overseas subsidiaries each year,the study found that Chinese enterprises internationalization and its subsidiaries overseas survival state has a significant negative relationship,namely with the increase of the level of internationalization of the parent company,the performance level of the overseas subsidiaries was decreased.At the same time,we also investigated the national environmental factors and the moderating effect of enterprise resource factors on the relationship between the two.Empirical study shows that host country institutional factors and experiential learning factors both have negative adjustment mechanism on the relationship between Chinese multinational enterprises internationalization level and survival performance of their overseas subsidiaries.In countries with better institutional environment,the relationship between the enterprise internationalization level and overseas performance level will be weakened;in the host country which MNEs have more international investment experience,the relationship also be weakened.At the same time,because the sample observations of Hong Kong accounted for nearly half of the whole investments,we also removed the sample to test the robust relationship between internationalization and performance and moderating effect of the two moderators.The results show that the main effect of internationalization and performance is still established,the moderating effect of host country (region) institution for internationalization and performance is still established,but the moderating effect of empirical learning is not significant.Finally,we respectively test the relationship in manufacturing industry and service industry.We found that the negative relationship in manufacturing industry has been strengthened,but in the service industry is not significant.The moderating effect of host country (region) institution for internationalization and performance is still established,but the moderating effect of empirical learning is not significant...