Entry mode selection is one of the most important decisions for Chinese multinational enterprises in the process of enhancing international competitiveness through horizontal and vertical integration strategies. For Chinese multinational enterprises in transition, institutional distance between two countries is an important influencing factor in the choice of their overseas market entry modes. From institutional distance to the choice of overseas market entry modes of multinational enterprises, the intermediate processes and paths are jointly influenced by many variables. Based on the institutional scenario in the transition period, this dissertation explores three issues from the perspective of integrating Institutional Theory and Resource Base Theory, considering the impact and mechanism of the international experience of multinational enterprises and the institutional differences between countries on the market entry mode: (1) How does the institutional distance between countries affect the choice of market entry modes of multinational enterprises in transition economies? (2) Is international experience a moderating variable of institutional distance on the choice of market entry modes of multinational enterprises? (3) How does international experience moderate the relationship between institutional distance and market entry mode?
Based on domestic and foreign research literature, this dissertation proposes a theoretical framework and conceptual model of the impact and mechanism of action of market entry mode choice, and puts forward research hypotheses. A questionnaire survey method is used to sample data from 312 multinational enterprises in China, and various statistical analysis methods such as regression analysis are applied to empirically test the theoretical model and research hypotheses, and the following research findings are obtained: first, Regulatory distance is negatively related to the size of investment equity ratio in the market entry mode of multinational firms; normative distance is negatively related to the size of investment equity ratio in the market entry mode of multinational enterprises; and cognitive distance is negatively related to the size of investment equity ratio in the market entry mode of multinational enterprises; second, International experience has a moderating effect on the relationship between institutional distance and market entry mode choice; third, International experience has a negative moderating effect on the relationship between institutional distance and market entry mode choice.
The innovative contributions of this dissertation include: (1) The dissertation explores the applicability of the Institutional Theory explanation in a transitional institutional scenario, taking Chinese multinational enterprises as a sample, and enriches and extends the theoretical results of the Institutional Theory. (2) This dissertation explores the impact and mechanism of institutional distance on market entry patterns during the transition period, which provides a possible answer to the current theoretical dilemma in international academia regarding the impact and mechanism of institutional influence on the strategic behavior of enterprises. (3) This dissertation constructs a theoretical analytical framework on the influence and mechanism of action of institutional distance on the choice of market entry mode of multinational enterprises, which lays the foundation for subsequent research. (4) In addition to the contributions of theory and research mechanisms, this study also provides decision-making insights for multinational enterprises to conduct multinational investment behavior more effectively.
The findings of this dissertation can theoretically enrich and expand the theoretical research results on the influence and mechanism of Institutional Theory on the strategic behavior of enterprises, and provide theoretical basis and empirical support for understanding and explaining the market entry strategy decisions of Chinese multinational enterprises. In practice, it helps to provide a basis for the formulation of relevant policies by the government and enterprises. Finally, the limitations and future research directions of this dissertation are stated.