A Research On Institutional Distance, Organizational Learning And Multinationals OFDI Innovation Performance

With the strategy of “going out”,the government has issued a series of documents and policies to guide Chinese enterprises Outward Foreign direct investment(OFDI),and encouraged them to “go out on a large scale and introduce the high-level technology”.However,it is not ideal that multinational corporations through OFDI access to strategic assets to achieve the effect of innovation capacity transition.Multinational corporations will be influenced by many external factors and their own conditions in learning or using the higher level technology of host countries.The institutional distance and organizational learning mode are always the focus of scholars and policymakers.In this background,this paper discusses the determining factors of multinational OFDI innovation performance in China with the system views in strategic areas of international business and organizational learning theory.Firstly,the article defines concepts,reviews the literature,and theoretically analyzes the influence mechanism of institutional distance on innovation performance of OFDI and puts forward relevant hypotheses.Next,using 191 Chinese listed multinationals' OFDI panel data in 2005-2014 and Zero Inflated Negative Binomial model to study institutional distance and organizational learning mode how to influence on the innovation performance of multinational OFDI.The empirical results show that:(1)there is a significant positive correlation between the formal institutional distance and the innovation performance of OFDI of multinational corporations;(2)the informal system distance has a significant negative correlation with the innovation performance of OFDI;(3)The relationship between OFDI innovation performance of multinational corporations has a significant positive adjustment effect.We also paid particular attention to the various dimensions of the system are different from the multinational OFDI affect innovation performance durations right.The relationship between the distance of two kinds of systems and the duration of OFDI innovation of transnational corporations was investigated by using the Survival Analysis method-COX risk scale model.The empirical results show that the relationship between formal institutional distance and informal institutional distance are inverse U-shaped curve with the OFDI innovation performance duration of multinational corporations.Finally,some suggestions on how to improve the innovation performance of OFDI are presented,such as strengthen macroscopic coordination to improve the policy for the protection of international investment,strengthen international exchanges and improve the system of partnership network,attaches great importance to the differentiation and organizational learning mode choice to acquire new knowledge and technology.So,this study is an objective assessment of the innovation performance of multinational OFDI provides empirical evidence of a micro-level,but also to further enhance multinational OFDI innovation performance made a number of suggestions.