Study On The Impact Of FDI Entry Mode On The Diversification Of Enterprise Products

In today's world,international capital flows are surging,and our foreign direct investment is developing rapidly.Facing the need of domestic overcapacity and industrial upgrading,China's manufacturing enterprises are increasingly looking to the international market and realizing their own strategic transformation and development.Therefore,it is necessary to study the impact of different modes of manufacturing industry entering the international market on its internal diversification,in order to enhance the capability of manufacturing enterprises to resist the risks of market changes,improve the position of manufacturing industry in global value chains.From the micro perspective,this paper adopts the combination of theoretical and empirical research method,selected the China A shares listed manufacturing enterprises from 2011 to 2015 years of foreign direct investment 366 sample data,to study the the impact of different modes of FDI on the product diversification.We selected three kinds of variables from the macro,meso,and micro perspectives:institutional distance,industry competition intensity and slack resources,study the moderating effect on the relationship between FDI and enterprise product diversification.The main conclusions of this study are as follows:(1)The different entry modes of foreign direct investment(FDI)have different effects on the diversification of enterprise products.Compared with green investment,transnational mergers and acquisitions can promote the development of diversified products.(2)Informal institutional distance has a negative moderating effect on the relationship between FDI and product diversification.That is,the greater the cultural distance between our country and the host country,the weaker the promotion effect of cross-border M&A on enterprise product diversification.(3)Slack resource of enterprises have a positive moderating effect on the relationship between FDI and product diversification.That is,the more redundant resources the enterprises are,the stronger the promotion mode of FDI will be to promote the diversification of enterprises' products.(4)Formal institutional distance and industry competition intensity have no moderating effect on the relationship between FDI and enterprise product diversification.The appearance of this result may be related to the selection of indicators of variables in this paper and the nature of the manufacturing industry itself.Combined with the empirical research results,from the perspective of government and enterprises,this paper gives suggestions on how to achieve diversification and enhance the risk resistance ability of manufacturing enterprises through different entry modes of FDI.