Accession To The Wto To Protect Chinese Companies Internationalization Strategy And Performance Relationship Research

Strategy management theory holds that internationalization for a company is the strategy both for development and for diversification. Therefore, the problem "Whether or not Internationalization may Generate Profits for Companies" is of common concern for scholars both at home and from aboard. A large number of relevant researches have been conducted. However, a uniform conclusion has yet to be formed. Meanwhile, almost all these researches are targeted at the developed countries, whereas the empirical research on the developing countries, especially in the fields of internationalization strategy of companies in China within the protection period after China's entry into WTO as well as variables with Chinese characteristics are quite insufficient. This article presents a research into the internationalization strategy and performance of the Chinese enterprises from the viewpoint of protection period.For the purpose of research, on the basis of literature research, this article adopts the method of combining the empirical research and case study based on the database of listed companies; constitutes a certain logic relationship among protection period, internationalization, specific advantage transfer, state-owned enterprise and company performance; proposes 10 hypotheses in 4 groups, utilizes SPSS statistic software to carry out empirical research with multiple regression included of the listed companies which satisfied the uniform conditions in 2001,2004 and 2006, as well as structural case analysis on 4 companies. According to the discussion of the research results, the article comes to the following conclusions: I. The degree of the company's internationalization within the protection period shows the change in "U" shape; II. The company's performance within the protection period witnesses the change in "U" shape; III. Since the Chinese internationalization process remains at its primary stage and fails to reach the "Threshold Value", the company's internationalization process and its performance within the protection period takes on a complicated mixed and alternate state; IV. In the protection period, the state-owned enterprises and their degree of internationalization show negative correlation; V. During this period, the company's specific advantage has little impact on its performance; VI. In the protection period, the performance of Haier remains on the left side of the J shape curve; VII.In promoting internationalization, cost and suitable time should be taken into account. Companies shouldn't be in haste to internationalize. Instead, they should nail down the strategy of internationalization, form specific advantages and lay emphasis on "Threshold Effects" and "Broken Window Theory".This article aims at the special environment of protection period after China's entry into WTO, researches into the internationalization strategy of enterprises and the relationship between the degree of internationalization process and the company's performance, and finally reaches many useful conclusions and produces new explanations. First of all, this is a research with the insertion of new environment. It combines many dialogues of relevant international academic researches, which enrich and supplement the research in this field; second, the conclusions are of referential significance in guiding companies to formulate and carry out the internationalization strategy; third, this research is helpful for evaluating the strategies of the Chinese companies and the internationalization process within the protection period and acts as the reference for the government in formulating relevant measures; fourth, the variables with Chinese characteristics in the internationalization process—whether or not the state-owned enterprises should carry out empirical research, have certain referential significance for accelerating the reform of state-owned enterprises and raising the quality of national economy; fifth, the utilization of relatively standardized and international empirical research methods makes up the deficiency in lack of empirical research in internationalization research for domestic enterprises, meanwhile, the adoption of case study method is conducive to revealing the internal features of internationalization of the Chinese companies, further facilitating the development of relevant domestic researches in depth.