Abstract：This study investigated the logical relationship between domestic horizontal integration of Chinese enterprises and international ownership advantages, then developed the research hypothesis correspondingly. Through empirical research based on secondary data, it found in Chinese enterprises that there is a positive correlation between the degree of domestic geographic diversification and assets advantages (Oa), there is a U-shaped relationship between the degree of domestic geographic diversification and institutional advantages (Oi), and there is a U-shaped relationship between institutional strengths (Oi) and Enterprise Performance. Specially, the degree of internationalization showed
negative moderating effect on the relationship between the institutional advantages (Oi) and corporate performance.This study involved the academic discussion about the amending of OLI theory.The results of this study indicated that the source of international competitive advantage of Chinese enterprises is Oi, and thus a new formation mechanism of ownership advantages was proposed, which not only enriches the OLI’s connotation, but also meets the appeal of current academia focusing on the home institutional effects on emerging markets enterprises’ internationalization behavior.
2015, Vol. 12 
