The Influence Of Cultural Distance On The Entry Mode Of Chinese OFDI Enterprises:the Moderating Role Of Host Country's Institutional Characteristics

The entry mode of OFDI enterprise is always a hot topic in academic research,cultural distance on the impact of entry mode is involved in most factors.Results the arguments of previous scholars: some scholars believe that the cultural distance is larger,more multinational companies will strengthen the control level of the subsidiary;another part of scholars believe that the cultural distance the more large,multinational companies will weaken the control level of subsidiary companies.In order to further demonstrate this problem,we assume that the results of culture and the greater distance,enterprises tend to strengthen the control of a subsidiary,the preference of the entry mode of green space.And,the host country will adjust the system characteristics The impact of distance on the enterprise's overseas entry mode.This paper expounds the concept and connotation of cultural distance,system environment,and put forward the hypothesis according to the related theory of economics and the existing references.In theory,this paper analyzes the mechanism of cultural distance influence enterprise overseas entry mechanism and mode of the host country institutional environment affect the implementation of regulation.In the empirical research,this paper we selected 158 overseas branch has China enterprises as the sample data,the empirical analysis combined with micro data and host macro data.Through the establishment of two logistic regression model,this paper draws the following conclusions: cultural distance does Chinese OFDI Enterprises Overseas entry mode have significant influence on the industry,this kind of impact is that cultural distance is larger,more enterprises prefer green ways to enter,the cultural distance is smaller,more enterprises prefer to enter joint ventures.This paper also verifies that the host government's attitude towards FDI reverse regulation of cultural distance on the OFDI Enterprises to enter the mode of choice,namely with the increase of cultural distance the government of the host country,the better attitude to FDI,will reduce the possibility of joint venture into the choice of transnational corporations and the host country.The features of the system in two dimensions: the moderating effect of country risk and the host country government,in the empirical results utility is not significant,therefore,no.Based on the above research conclusion,this article from the government and enterprise two aspects of the corresponding measures are put forward as follows: from the three aspects of funds,tax,foreign exchange settlement and formulate preferential economic policies to help enterprises in the process of going out to get practical benefits and enhance the competitiveness in international market;from the enterprise to improve core competitiveness,accumulated experience of transnational management,three aspects of advanced learn from foreign technology to better integrate into the tide of economic globalization.