An Empirical Study on the Impact of Cognitive Proximity on the Industry Decision of Chinese Firms'Greenfield Investments
Using the greenfield investment data of fDi Markets,this article explores the industry choices of Chinese firms'greenfield investments from the perspective of cognitive proximity based on firms'comparative advantages,with full consideration of the dual impacts of firms'potential comparative advantages and locally relevant knowledge spillovers.Firstly,Chinese multinational enterprises have both intra-industry and cross-industry investments,and the investment industries are closely,but not entirely,aligned with their own knowledge bases.Secondly,the industry choices of Chinese firms'greenfield investments are significantly influenced by both the firms'potential comparative advantages and city-related knowledge spillovers.Thirdly,foreign and state-owned enterprises rely only on their own capabilities to select sectors for greenfield investment,while private enterprises rely more on the urban knowledge base due to their greater local embeddedness.Small-scale enterprises and first-time greenfield investors also rely more on the urban knowledge base due to their lack of experience.Similarly,urban heterogeneity shows that the more complex or innovative the city's economy is,the more likely it is that the sectors chosen for firms'greenfield investments are influenced by the city's knowledge base.In addition,this study also helps to understand the micro-processes and mechanisms of the evolution of Chinese enterprises'greenfield investment sectors,and provides policy recommendations for the effective implementation of China's"Going Global"strategy.
万方数据
维普
