Influencing Factors On The Performance Of Large-scale Enterprises In Developed And Emerging Markets Countries

Nowadays, enterprise as the mainstay of the market economy, is an indispensable part for economic development and social progress. In particular, large-scale enterprises play a vital role in economic development and the national economy. However, there are still some problems about Chinese large-scale enterprises so far. Therefore, it is necessary to study on the influencing factors about the performance of large-scale enterprises, in order to improve the performance of large enterprises in China. In contrast, the market economy of developed countries is more complete than that of emerging market countries, and large-scale enterprises in developed countries often have longer histories, so the main influencing factors about the performance of large-scale enterprises may also be some differences in the final mechanism and results. Therefore, this paper will use enterprises data in both the developed countries and emerging market countries to make empirical analysis, and put forward the appropriate theoretical framework so that this paper can provide theoretical conclusions and policy recommendations for the development and reform about large-scale enterprises in China.Influencing factors on the performance of large-scale enterprises include many aspects: from the enterprise internal factors, there are corporate governance, R&D, internationalization, and corporate social responsibility, etc; from the external factors, there are market structure, government policies and subsidies, the completeness of the market system, the external economic situation, etc. These factors have a greater or lesser impact on the performance of large-scale enterprises. In the past studies, the scholars usually pay attention to enterprise size, corporate governance, macroeconomic policies and so on. But with the developing of modern technology, the continuous deepening of global economic integration, and the community on environmental protection, human rights and other social issues of concern to improving, the influences of R&D, internationalization, and CSR on the performance of large-scale enterprises have been strengthened.In addition, the R&D investment and international strategy of large-scale enterprises is the most important part of R&D spending and foreign direct investment for a country. At the same time, the fulfillment of corporate social responsibility about large-scale enterprises, also played an exemplary and leading role on other small-scale and medium-scale enterprises. Therefore, this paper studies mainly at the mechanism of R&D, internationalization, and CSR influencing on performance of large-scale corporations.This article first studies on measurement about corporate performance, R&D, internationalization, and CSR. Later, we discuss the relationship between these three factors and firm performance, with using the measurement methods in theoretical research and empirical analysis.This paper consists of three parts, and in turn discusses the mechanism of R&D, internationalization, and CSR influencing on performance of large-scale corporations.Firstly, in terms of the relationship between R&D and enterprise performance for large-scale enterprises:(1) Sort out the overall situation and industrial distribution for R&D about large-scale corporations between developed countries and emerging market countries.(2) Using industry features as a moderator, build a inter-temporal optimization theory model for the relationship between R&D and enterprise performance for large-scale enterprises. The inter-temporal optimization theory model shows that because of different sources of monopoly position of large enterprises in different sectors, the purpose and distribution of R&D investment are different, which make R&D investments of large enterprises in different sectors affect their financial performance and productivity differently.(3) Based on transnational microscopic samples, regression results confirm the hypothesis.Secondly, in terms of the relationship between internationalization and enterprise performance for large-scale enterprises:(1)Sort out the overall situation for internationalization about large-scale corporations between developed countries and emerging market countries.(2) Build a M-mode four-stage theory of international expansion based on the Three-Stage Theory of International Expansion(Contractor et al.,2003). This M-mode four-stage theory assumes that the internationalization ways are in different intervals for large-scale corporations between developed countries and emerging market countries.Specifically, the relationship between internationalization and enterprise performance for large-scale enterprises in developed countries has gone "down- up- down" the three stages; while the relationship between internationalization and enterprise performance for large-scale enterprises in emerging market countries has gone "up- down- up" three stages.In addition, both industry characteristics and the level of economic development of home country can be moderator for the relationship between internationalization and enterprise performance for large-scale enterprises.(3)Based on microscopic samples, regression results confirm the hypothesis.Thirdly, in terms of the relationship between CSR and enterprise performance for large-scale enterprises:(1)Sort out the current situation and history for CSR about large-scale corporations between developed countries and emerging market countries.(2)A behavior of the selection process model is built to explain how corporate social responsibility(CSR) is fulfilled. Secondly, under the intertemporal condition, when the marginal product of fulfilling corporate social responsibility during the last period is equal to the marginal product of direct production in current period, the corporate efficiency is optimized.(3)Based on microscopic samples, regression results confirm the hypothesis.From an international point of view, China is still in the low-end position in the international value chain system; from a domestic perspective, China is in a key moment of transformation about the economic restructuring and industrial structure to be upgraded. Therefore, according to the theoretical research and empirical test, in order to ameliorate the economic situation, as an important force in China's economic development, large-scale enterprises need to further strengthen the capital investment in the independent R&D, internationalization and CSR, improve the enterprise-related system construction, pay attention to the objective laws, and rationally distribute the proportion of capital investment. At the same time, Chinese government should improve the relevant laws and regulations, and establish of appropriate incentive policies.Therefore, media and public should give full play to the role of supervision and guidance.