Work

Host government digitalization and Chinese OFDI entry mode choice: green-field investment vs cross-border M&A

Year: 2025

Type: article

Abstract: Based on a theoretical framework based on the perspectives of open governance, transparent governance, and smart governance, the article comprehensively explains the potential impact of host country government digitalization on Chinese enterprises’ OFDI entry mode selection. The results indicate that host government digitalization significantly promotes the probability of Chinese enterprises investing by greenfield investment mode; After using instrumental variable to eliminate endogenous interference and undergoing a series of robustness checks, this conclusion remains robust; Host government digitalization influences the OFDI mode choices of Chinese enterprises by suppressing corruption and strengthening intellectual property protection. Based on the research conclusions, we put forward policy suggestions on “how Chinese enterprises should make OFDI entry mode decision and optimize the project management after entry based on the level of host government digitalization“. First published online 02 April 2025

Source: Technological and Economic Development of Economy

DOI: 10.3846/tede.2025.22519

Authors: Xiaoge Li, Guangqin Li, Xin Li

Institutions: Shanghai Business School, Shandong University, Anhui University of Finance and Economics

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $727