The Impact of Institutional Distance on Innovation Performance in Chinese Reverse OFDI: Moderating Effects of Cultural Distance and Internationalization Experience

In contrast to developed economies, emerging market economies exhibit varied directions of investment based on the host country’s economic level. This paper investigates crucial role institutional distance in reverse outward foreign direct (OFDI) from China and its mechanism influencing corporate innovation. We combine theory with resource-based view utilize a zero-inflation negative binomial model test samples Chinese listed companies. Our results demonstrate that positively impacts parent innovation performance OFDI. Additionally, we creatively examine interaction between cultural distance, enriching relevant research context. By studying two types moderating variables, attempt seek effective ways actively cope this influence. The dual definition both an organization’s internationalization top management team’s (TMT’s) overseas background expands theoretical margin experience.