중국기업 해외시장 진입방식의 결정요인에 관한 연구

Determinants of Chinese Enterprises’ Overseas Entry Mode: Focusing on Local Institutional Development and Equity Acquisition

Purpose - This study aims to examine the relationship between the local country’s institutional development and the entry mode into the overseas market of Chinese companies. Further, we investigate the impact on the selection of the entry mode depending on whether it acquires a minority equity stake in target companies in the host country. Design/Methodology/Approach - Outward foreign direct investment (OFDI) of 890 Chinese companies that expanded overseas from 2006 to 2015 was selected as a sample. The dependent variable of this study is whether a Chinese multinational corporation has an M&A for an investment into target company. For this, logistic regression was adoopted to verify our hypotheses. Findings - Host country’s Institutional development and OECD member had a positive influence on Chinese multinational corporations choosing M&A as the entry mode. In addition, Chinese companies prefer M&A even in the case of ex-ante partial acquisition on the target company. Finally, Chinese companies prefer the greenfield when their ex-ante partial acquisitions on target firm interact with the institutional development of the host country. Research Implications - If a stable investment-oriented contract or a joint venture that diversifies risk was preferred by multinational firms in the past, it has become necessary to consider attempting M&A that can quickly access the market and gain awareness from consumers for advanced or institutionally developed countries.