Research On The Impact Of Cultural Distance On The Operating Performance Of Chinese OFDI Enterprises In ASEA

The year 2022 marks the 31st anniversary of the establishment of dialogue between China and ASEAN.With the continuous development of China’s foreign direct investment,direct investment in ASEAN countries has attracted more and more attention from enterprises.For a long time,most of the studies on OFDI have generally focused on economic and political factors,and relatively few on cultural factors.However,with the advancement of globalization,the influence of cultural distance is increasingly strong.Therefore,this paper focuses on the impact of cultural distance on the business performance of China’s OFDI enterprises in ASEAN,which has important research significance for promoting the further promotion of China’s "going out" strategy and helping the process of globalization.This paper systematically introduces the concept of culture and cultural distance,and expounds the theoretical basis of the research on foreign direct investment related to cultural distance.On the basis of summarizing the existing research results and combining the current situation of China’s direct investment in ASEAN,this paper takes the cases of Chinese listed companies’ direct investment in ASEAN countries from 2011 to 2019 as the study sample,and uses the cross-sectional data regression method to comprehensively investigate the impact of cultural distance on the business performance of Chinese listed companies’ direct investment in ASEAN.The empirical study shows that cultural distance has a blocking effect on the business performance of Chinese enterprises that make direct investment in ASEAN countries,and whether the parent company has international experience has a moderating effect on the impact of cultural distance on China’s business performance in ASEAN.By using the method of sub-sample regression,the research shows that when China’s OFDI enterprises to ASEAN are the secondary industry,the impact of cultural distance on their business performance is particularly prominent.Finally,according to the conclusion of the empirical study,taking the Surabaya University invested by Guangdong Haida Group in Indonesia as a case,this paper analyzes the strategic implementation of Chinese enterprises’ cross-cultural investment and operation in ASEAN,and summarizes the enlightenment according to the case study.Finally,based on the above empirical and case studies,this paper puts forward policy recommendations from the perspective of the country and enterprises respectively.At the national level,we can promote our enterprises’ understanding of the host country’s culture by establishing an information sharing platform;Strengthen friendly exchanges between governments in order to alleviate the disadvantages of outsiders and improve the competitive advantages of enterprises in the host country;Pay attention to the cultivation of international communication talents and carry out cultural export in reverse,so as to achieve in-depth understanding of each other’s culture and shorten the cultural distance between the two countries.At the enterprise level,enterprises should seize the opportunity to invest abroad after accumulating some overseas experience of ASEAN countries;Establish an internal information network to enhance the understanding of the host country;Strengthen information cooperation with other listed companies and share overseas investment experience.