Analysis Of Outward Foreign Investment And Influencing Factors In The Chinese Game Company

With the popularity of 4G networks,Chinese game company has also had an unprecedented development.As of 2018,global revenue of game industry totaled 137.9 billion dollars,and Chinese game revenue was 37.9 billion US dollars,accounting for 28%of the world.Chinese game market becomes the largest game market in the world,but in recent years Chinese demographic dividend has gradually disappeared,and "game go globally"has become a key measure for most Chinese game companies to away from the domestic difficulties.As an emerging industry,the literature of most game industry is mainly from the perspective of domestic industry development and analyzing individual case to study the overseas mergers and acquisitions of the game industry,however,how to choose the path of outward foreign investment and interrelated influencing factors,most researches are little involved.This paper is based on multiple corporate data by the Grounded Theory approach,to mainly explores the path of outward foreign investment in Chinese game industry and the specific influencing factors.It analyzes and summarizes the suitable experience for Chinese current game companies to go global,and provides inspiration for the other companies.Through collecting a variety of outward foreign investment case of Tencent,NetEase,Perfect World and Giant Network which are top four companies in Chinese game industry,we use the Grounded Theory method to sort,analyze and refine the data,and finally reorganize it into a model.Finally we get the model of the path of outward foreign investment in Chinese game companies and the key influencing factors that determine the choice of enterprises.The main conclusions of the paper are following:1?From the perspective of the overall model,the path of game companies outward foreign investment is summarized into six steps.It is the pre-factors ? conditional factors?influencing factor of company itself?the investment location?the path of choice?the purpose of investment?the risk.2?There are commonalities in the selection factors among the three investment models.The pre-factors,self-development and enterprise capabilities,location selection and the purpose of investment are the factors that different companies in the investment model choose to pay attention to and consider.3?However,there are also significant differences in different investment models.(1)Synergy effects,marginal industry expansion,Monopolistic Advantage,opportunity cost and resource seeking are the key factors which companies choose the path of M&A investment.(2)Shareholding investment is a simplified model of M&A investment.It is a kind of cooperation relationship between two companies.(3)The game company who choose greenfield investment is the product and technology export type.The aim of overseas is to better export products and occupation of the global market.