Influential Factors Of Internationalization And Their Effects On International Performance: An Empirical Study Of Small And Medium-sized Enterprises

As the development of Economic globalization and Economic integration,the morechallenges have to be taken by SME.In order to cater to the revolution of new science and technology and the newscience and technology it brings, the small and medium-sized enterprises shouldcontinue to gaze at the domestic and foreign markets, in order to survive in the fiercecompetition, achieve long-term development.Currently,as an important role in the national economy, SME enterprisesconstantly open up the international market in order to realize its own industrialupgrading an, add value of ascension and actively pursue high profits,. economyplays an important role, the enterprise in order to realize its own industrial upgradingand added value of ascension, and actively pursue high profits, and constantly open upthe international marketIn addition, with the production trends of globalization gradually transforming,every nation competes to find the production base to make lower cost, which leads theindustry to divert to the county owing the lower cost, prompts every enterprise toengage in foreign investment trend. And SME, the representative of active economy,also eagerly participate in the international trend; even some companies areinternational in the early establishing.Our country's SME have already been starting the international operation, owingto the enterprises' mobility and flexibility, fully expressing the adaptability. Albeit,indulging in the ambience of M&A and enterprise large-scale, the way to globalizeencounters the challenge of upgrading and transformation. As the internationaldevelopment of enterprises, many companies don't get too much about the laws oflocal areas or the neglect of the new issues owing to the management of multi-nationcompany, contributing to the inefficiency of management and fail get to the supposed goals. All of them severely impede the development of our nation's SME. Under thiscircumstance, facing multiple civilizations and national conditions, what is the focusof academic and enterprises is how to make overseas subsidiaries don't deviate fromthe overall goals of the parent company,as well as utilize the local environment tointegrate the parent company's resources to make the maximum of profits. Thus, ithas been the key of the SME's success that exploring the concrete, essential andoperative influencing factors.Above of all, according to the retrospect of relevant literatures, we hardly see thestudying of the international influencing factors of SME, particularly the empiricalresearch. This paper wills analysis the factors in international views which influencethe degree of the international of SME and performances, significant to theinternational development of SME.(1)Integrated Entrepreneurial orientation, human resources, the intensity ofcompetition and niche market opportunities into a framework to study their impact oninternational, comprehensive and in-depth to reveal the relationship between thevariables, enriched and improved the international theoretical system, andcomplements the entrepreneurial theory, human resources management theory andopportunity recognition theory.(2)Studythe operation of the internationalization of SME from the two majorinternal and external perspective, human capital is crucial for SME, but based on theentrepreneurial orientation of the human capital framework for greater internationalimpact of the SME. External intensity of competition enables companies to continue toseek a niche market opportunity, meet the international operations. From two majoraspects to clarify the factors affecting the internationalization of SME, which intheory is a new attempt.(3)Introduce the technological innovation to the research framework, exploresthe impact of technological innovation on the degree of internationalization of thefirm and the performance of the international operation to make up the research on therelationship between technological innovation and degree of internationalization. Notonly enrich the theory innovation, but also improve the internationalization theory.(4) From external influence factors,the research probe to the niche marketopportunity, not only made clear influence of the opportunity to SME forayed intothe internationalization, but also account for seeking new niche market opportunities will be the key to realize survival and success during the small and SMEinternationalization process when encountering the fierce competition.This paper will be the first time to regard the niche market opportunity as the Premise factorof the influencing element of international. For niche theory,it is also a brand-newinterpretation.This article also obtained the following valuable conclusions:1. The internal factors, namely, entrepreneurial orientation and human capital,enterprise internationalization performance, the degree of international and nationaltechnical innovation has a significant impact. Specifically: the entrepreneurialorientation has a positive impact on the international performance, the degree ofinternationalization and technological innovation, human capital has a positive impacton international performance and degree of internationalization and technologicalinnovation.2. The external factors, namely,the intensity of competition and niche marketopportunities on the international performance, the degree of internationalization andtechnological innovation have a significant impact. Specifically: the intensity ofcompetition has a positive impact on international performance and technologicalinnovation, the degree of competition on the degree of internationalization preachednegative, niche market opportunities has a positive impact on the internationalperformance, degree of internationalization and technological innovation.3. And technological innovation have a significant impact on the degree ofinternationalization and international performance, but its impact is positive.4. The degree of internationalization of international performance is inconsistentwith the original assumption which we think it a positive correlation. Between thedegree of internationalization and international performance shows a S-typecharacteristics.5．Cases and studies show that, due to domestic SMEs and foreign SMEs, we needthe internal factors, including entrepreneurial orientation and human capital tostrengthen their entrepreneurial orientation tendency and the accumulation of humancapital, both had a decisive influence on the degree of internationalization of SMEs,international of performance and international achievements in innovation behavior.The innovation of this paper is mainly reflected in the following five areas:First, build the internationalization of SMEs impact factor model based on internaland external perspective, with the entrepreneurial orientation, human capital, the intensity of competition and niche market opportunities incorporated into the model tostudy their impact on the degree of internationalization and internationalperformance. And take advantage of China's SME data to make the test. Review ofthe relevant theory, the paper finds that the previous researches focused on the stageof internationalization of the firm, the strategic choice of international as well as theimpact of the different stages of business performance factors. To some extent, theyignored international performance, while strategic-mainly concentrated in the export,license, franchise, joint venture or wholly-owned, and being confused with theso-called strategic and stage. In accordance with Zahra (2001) and some otherscholars' point of view, we re-tested the internal and external factors,choosing theimportant factor to study the development of the internationalization of SMEs. This isone of the innovation.Second, use the data of SMEs to test a new scale to measure the degree ofinternationalization. The previous measurement of the degree of internationalizationmainly used the indicators to measure the performance of international enterprises offoreign sales revenue accounted for total sales revenue as well as overseas salesgrowth. Although,to some extent, this measure indexes reflect the degree ofinternational, but it ignores the difference of the degree of internationalization andinternational performance, which are obviously not the same. The paper uses George's(2005) and Gil's(2006) conceptual indicators to measure the degree ofinternationalization. And empirical results show that these indicators are feasible,reliability and validity are to meet the requirements.Third, this paper innovatively uses competition intensity as the dependent ratherthan the independent to study the impact on international performance and the degreeof internationalization. In the previous research on international, most study used theintensity of competition as the independent between some two variables to explore theimpact on the variable relationship. And only a small number of scholars analyzed thedirect effect on the extent of the intensity of competition on international performanceand international from the qualitative point of view. This paper break the routine, doesfirstly empirically study the intensity of competition on international performance andthe degree of internationalization, and find it has a positive impact on the former aswhile as a negative impact on the latter.Fourth, empirically test the S-shaped relationship between the degree ofinternationalization and international performance. Hsu(2005) found a threshold effect exists between the degree of internationalization and international performance,based on qualitative analysis. Namely, the degree of internationalization's impact onthe international performance decrease in the first phase, increase in the second stage,and decrease again in the third stage, which shape is roughly similar to the S-type. Inthis study, according to the China SMEs' data, we tested and verified the relationship,firstly make the empirical validation of the S-shaped relationship, and creativelyensure the direction of the different stages of curve bump.Fifth, by comparing the case of domestic SMEs and foreign SMEs, we validated therelevant theory,. Especially,in the case,we creatively chose a inherent global companyas the reference of the Chinese enterprises, having successful experiences of others togo by, for Chinese enterprises successfully carrying out international operations andas soon as possible.