Research On The Influence Mechanism Of Institutional Distance And Geographical Distance On Enterprise's Cross-regional Entry Mode

In China's market segmentation situation,there are significant differences between different regional markets in China,enterprises in the country to implement cross-regional business strategy is an important way to gain competitive advantage.Chinese enterprises implement cross-regional operations in the country,can integrate the regional market of highquality resources,can promote the internal capacity of the organization,can enhance the business risk of diversification,can gain more market opportunities to achieve economies of scale,thereby enhancing the comprehensive competitiveness of enterprises.However,Chinese enterprises invest abroad frequently to carry out international activities,while its cross-regional business activities are poor performance.Based on this,this paper attempts to explore the factors that affect the domestic cross-regional business of Chinese enterprises.On the basis of literature research,this paper constructs the theoretical model of institutional distance,geographical distance,market segmentation and enterprise cross-regional entry mode,and puts forward the corresponding theoretical hypothesis.Institutional distance and geographical distance are important regional differences that affect the cross-regional business activities.The degree of market segmentation of target market is the key situation factor that enterprises face in the country to carry out cross-regional operation.This paper takes the entry mode of cross-regional operation as the breakthrough point,and discusses two core problems in the way of theoretical research and empirical test: First,how the institutional distance,geographical distance and market segmentation affect the entry mode of crossregional business.Second,how does the market segment affect between the institutional distance and the geographical distance to the cross-regional business entry mode?This paper explores the influence of institutional distance and geographical distance on the cross-regional entry mode of enterprises,which can supplement the shortcomings of domestic cross-regional management problems,expand the theoretical scope of the research on the internationalization of regional diversification.Make the market segmentation as a situational factors of the cross-regional business strategy,both to enrich the theoretical study of market segmentation,and makes the internationalization of the theory applied to the domestic cross-regional management theory can take into account China's situational factors;The theoretical content of the entry model,joined the domestic cross-regional business model into the study.Through the theoretical analysis and empirical test of this paper,the following main conclusions are drawn: the greater the formal institutional distance,compared with mergers and acquisitions,enterprises are more inclined to choose greenfield investment.Compared with the joint venture holdings,companies are more inclined to adopt a sole proprietorship ownership mode.The greater the distance from the informal system,the more inclined to choose the greenfield investment than the way of mergers and acquisitions.Compared with sole proprietorship,companies are more inclined to adopt joint ventures.The greater the geographical distance,compared with the greenfield investment,companies are more inclined to mergers and acquisitions.Target market,the higher the degree of market segmentation,relative to the new,cross-regional business enterprises are more inclined to choose the way to enter the acquisition.The degree of market segmentation in the target market has a regulatory effect on the relationship between institutional distance,geographical distance and enterprise cross-regional entry mode.