| Over the past 40 years of reform and opening up,China’s economic development has achieved world-renowned achievements.China’s private investment and private economy have grown from small to large,from weak to strong,and have gradually become the drivers of China’s economic development,the important force to optimizing the industrial structure,prospering urban and rural markets,and expanding social employment.In the new era,China’s economy has shifted from high-speed growth to high-quality development.Foreign investment and cooperation are an integral part of China’s macroeconomy opening up to the world.National macroeconomy development,supply-side structural reforms,and the “Belt and Road”initiative have put forward proposals and higher requirements for the development of private enterprises.The private economy is an important achievement of the development of the socialist market economy,an important force to promote the development of the socialist market economy,and an important subject in advancing supply-side structural reforms,promoting high-quality development,and building a modern economic system.It is an important force for our party in the long-term governance,to unite and lead the people of the whole country to realize the "two centenary" goals and the Chinese dream of great rejuvenation of the Chinese nation.At this stage,to promote the formation of a new development pattern with the domestic cycle as the main body and the mutual promotion of the domestic and international double cycles is an important strategic decision made by the Party Central Committee with Comrade Xi Jinping at the core.Internationalization is conducive to private enterprises to better use the international and domestic two markets and two resources.It has great significance for building a new development pattern of international and domestic dual cycles.With the implementation of China’s "Going Global" strategy and the "Belt and Road" initiative,more and more private enterprises going to the international market to carry out foreign direct investment and international economic and trade cooperation.The degree of internationalization continues to increase,becoming an important force for China to go global.The current international economic structure is undergoing profound changes,and the international market is facing new development opportunities.The development of private enterprises requires a broader international vision,and needs to further enhance the level of internationalization and improve operating performance.In order to improve the viability of private enterprises and their competitiveness in the international market,internationalization has become an indispensable choice.It allows enterprises to enter a broader market,enhance corporate image,increase production capacity,and improve corporate performance by reducing costs through improving production efficiency.Nowadays,internationalization has become one of the key elements for private enterprises to operate well and develope their bright future prospects.In the process of "going global",internationalization and performance are both key factors that enterprises need to consider.The relationship,the influence mechanism and the moderating effect are also the key considerations and concerns of the academia.How private enterprises can improve their international performance,adhere to innovative development,maintain a good international rhythm,lead the value chain of international cooperation,and ultimately achieve sustainable development,is a subject that every business operator and decision maker needs to think about.This research makes an in-depth study of how Chinese private enterprises can better promote internationalization in the new era and the new round of globalization from the aspects of theoretical basis,institutional background,actual situation and empirical research,and analyzed the evolution mode and driving factors of the internationalization of Chinese private enterprises.This paper using empirical research methods to analyze the impact of private enterprises’ internationalization on their performance,from the macro level of the “Belt and Road” initiative to the micro level of private enterprise executives’ overseas experience and internal risk control of private enterprises.Combining with the results of empirical research,it puts forward opinions and suggestions on the international development of private enterprises from the policy level and enterprise level,aiming to provide new momentum for the sustainable development of private enterprises overseas.The innovations of this research are mainly in the following three aspects: First,the topic selection has innovative significance.This research takes Chinese private enterprises that have developed rapidly in internationalization in recent years as the research object,and focuses on the relationship between the degree of internationalization of private enterprises and their operating performance.The topic is innovative.The second is that the research method has innovative significance.During the research,questionnaires were issued to Chinese private enterprises that are representative in the field of international development.At the same time,they conducted field surveys and visits to countries and regions where Chinese private enterprises’ foreign investment is concentrated.This serves as the foundation of theoretical and empirical research in this paper,and has innovative significance in research methods.The third is that the research conclusions are of innovative significance.Based on theoretical research and the conclusions of a large-scale questionnaire survey,this paper conducts empirical analysis with a number of Chinese privately held listed companies engaged in overseas operations from 2005 to 2019 as a sample.The conclusions obtained have innovative value for improving the international performance of Chinese private enterprises and accelerating the sustainable development of Chinese private enterprises overseas.This article is mainly divided into five parts.The first part(Chapter 1-2)Introduction and theoretical research.This part introduces the research background,the theoretical and practical significance of this research,and analyzes the main reasons why Chinese private enterprises choose internationalization,which is to help companies establish new sources of income,gain competitive advantages,promote business growth,and access global talent,find new global customers and obtain foreign investment opportunities through the use of host country government preferential policies.This part also clarified research route and research methods.The literature review part defines the concepts of corporate internationalization and corporate performance.At the same time,it reviews relevant literature from three aspects: corporate internationalization theory,corporate performance,and the relationship between corporate internationalization and performance,including: combing The theory and development of corporate internationalization,including "monopoly advantage theory","product life cycle theory","international production compromise theory","internalization theory","marginal industry expansion theory" and "international new venture theory" ”And other corporate internationalization theories;analysis of corporate performance from three aspects: accounting indicator system,market indicator system,and comprehensive indicator system;from the current relevant research,the relationship between corporate internationalization and its performance mainly include positive,negative,U-shaped,inverted U-shaped,S-shaped and N-shaped,etc.The second part(Chapter 3)introduces the evolution mode and driving factors of the internationalization of private enterprises.The development of corporate internationalization can be divided into three levels,namely product internationalization,business internationalization and brand internationalization.Product internationalization refers to the company’s local R&D and production,and sales of products to the international market;business internationalization refers to the gradual internationalization of the company’s design,research and development,production,and sales;brand internationalization refers to the company’s design,research and development,production,and sales fully internationalized,the company itself gradually transforms into brand managers and holders.This article analyzes the internationalization evolution mode of Chinese private enterprises from three levels.It analyzes the driving factors of the internationalization of Chinese private enterprises from both external and internal sources.At the same time,in this research,900 questionnaires are distributed to China private overseas investment enterprises in different regions and industries,and a total of727 valid questionnaires are collected(see the appendix at the end of the article for details of the questionnaire content).It aims to explore the relationship between the internationalization and performance of Chinese private enterprises from three aspects: basic corporate information and international operating performance,major challenges faced during corporate international development,and policy demands of enterprises towards the home country and host country government.The survey questionnaire results show that most private enterprises have a strong desire to internationalize.Chinese private companies are highly satisfied with overseas business performance.Chinese private enterprises have gradually increased their enthusiasm for participating in the “Belt and Road” construction,but the level of internationalization of the corporate management is generally not high,and Chinese private companies investment overseas are facing pressure in the prevention and control of financial risks,and the information,financial,and legal support platforms for private companies’ overseas investments need to be improved.The third part(Chapter 4)is the theoretical analysis and hypothesis of the impact of private enterprise internationalization on performance.This part combines the results of the survey questionnaire for Chinese private enterprises,analyzes the relationship between the internationalization degree and performance of Chinese private enterprises from a theoretical perspective.Based on the results of questionnaire surveys and interviews,it analyzes the moderating effects of the “Belt and Road” initiative,overseas experience of corporate executives and internal risk control on the impact of corporate internationalization performance,and proposes corresponding research hypotheses.This research puts forward 4 hypotheses,which Hypothesis 1: Under the low and high degree of internationalization,corporate performance increases with the degree of internationalization increase,while at the medium degree of internationalization,performance descend with the degree of internationalization ascend.Hypotheses 2,3,and 4 analyze the moderating effects of the “Belt and Road”initiative,overseas experience of corporate executives,and internal risk control capabilities on performance from the macro and micro levels.That is,Hypothesis 2 The Belt and Road Initiative has a positive regulatory effect on the relationship between internationalization and performance;Hypothesis 3 The overseas experience of executives has a positive regulatory effect on the relationship between internationalization and performance;Hypothesis 4 Internal risk control capabilities have a positive regulatory effect on the relationship between internationalization and performance It has a positive regulating effect.The fourth part(chapters 5-6)separately analyzes the relationship between private enterprise internationalization and performance and the moderating effect of private enterprise internationalization on performance.Select a sample of 20614 private enterprises that implemented corporate internationalization from 2005 to 2019 to conduct an empirical analysis of the proposed hypotheses.Two indicators of export and OFDI are selected to measure the degree of internationalization from the two levels of breadth and depth.Non-linear model,dual threshold model,and linear model are used to empirically analyze the relationship between internationalization degree and performance,and verify the hypothesis 1.Established.At the same time,the empirical analysis of the moderating effect of private enterprise internationalization on performance shows that hypotheses 2,3,and 4 are also valid.The fifth part(chapter 7)is conclusions and recommendations.The main conclusions of this research include: the internationalization of Chinese private enterprises is driven by both internal and external forces;the degree of internationalization of Chinese private enterprises and their performance show a volatile relationship;the proposal of the “Belt and Road”initiative has significantly improved the business performance of Chinese private enterprises which carry out investment along the Belt and Road Countries;The overseas experience of senior executives promotes the the performance in the process of internationalization;good internal risk control capabilities can promote the performance of Chinese private enterprises in the process of internationalization.Based on the research conclusions,the main recommendations for the internationalization of Chinese private enterprises include: at the government level,improve the top-level design of investment protection agreements;speed up the improvement of institutional policy and service systems;comprehensively establish legal and taxation support systems;enhance the image of Chinese enterprises in foreign investment,Reduce the risk of public opinion;establish a Chinese enterprise "going out" brand image strategy scientifically as soon as possible to reduce the subjective and objective risks of public opinion.On the front of enterprises,multi-party cooperation to reduce investment risks;Strengthen scientific management and internal control,establishing a financial risk assessment system;Reserve talents and build a more international senior management team;choose different internationalization strategies according to the company’s own characteristics. |
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