Research On The Relationship Between Creative Assets And Overseas Market Entry Modes Of Enterprises

Since the financial crisis of 2008,foreign direct investment of the world has been in a tough time to recover.However,through implementing the "One Belt And One Road" policy,the Chinese government has strengthened cooperation and exchanges with other countries and accelerated the process of Chinese enterprises' integration into the world,which has greatly improved China's ofdi.From the perspective of industrial distribution,the service industry accounted for over 70% of China's OFDI stock at the end of 2016,indicating its important position in China's ofdi.The choice of entry mode is one of the key decisions in the internationalization strategy of enterprises,which affects the future decision and operation of enterprises in the host country.The accumulation of creative assets requires long time and huge investment,affecting the selection of market entry mode in the host country due to transaction costs,knowledge transferring efficiency and the demand for complementary resources.In addition,the institutional distance between the home country and the host country and enterprises' own experience will also affect the choice of overseas market entry mode.In general,the main conclusions about the selection of enterprises' entry mode are based on the data of manufacturing industry,and whether these conclusions are applicable in service enterprises still needs to be further investigated.And in domestic research,most of conclusions are just from theoretical elaboration but not empirical test.Based on 480 overseas investment projects data of 134 Chinese listed service companies from 2009 to 2016 and related literatures,this paper chooses marketing intensity and technical intensity to measure the creative assets and use Logistic model to study effect of the enterprises' creative assets in its choice of joint venture mode and wholly-owned mode when entering to a host country market.At the same time,the moderating effect of the formal and informal institutional distance between the home country and the host country,as well as the host country experience of the enterprise itself in the mode selection process are investigated.The research results show that(1)for the sake of specific assets,transferring knowledge efficiently and decreasing in the demand of complementary resources,creative assets of enterprises and entry mode have a positive relationship.Or in other words,the greater the marketing intensity of an enterprise,the more likely it is to choose a whole ownership mode into the host country market;the greater the technical intensity of an enterprise,the more likely it is to choose a whole ownership mode into the host country market.(2)the formal institutional distance positively moderates the relationship between marketing intensity and entry mode,that is,the greater the formal distance,the more likely an enterprise is to choose a whole ownership mode.(3)experience negatively moderates the relationship between creative assets and the entry mode of enterprises.In other words,the greater marketing intensity an experienced multinational enterprises has,the more likely it will choose the mode of joint venture.The greater technical intensity an experienced multinational enterprise has,the more likely it will choose the mode of joint venture to enter the overseas market.According to these results,this paper also gives some advice both on the country level and company level.The government should pave the way for enterprises to go abroad through applying supportive industrial policy,establishing a government information consulting system,and signing international agreements.Enterprises should actively cultivate core competitiveness,pay attention to national institutional differences,accumulate experience and choose a modest entry mode to achieve successful operation.