A Study On The Relationship Between Internationalization Of Enterprises And Business Performance

With the globalization of economic and the international division of labor, firms in different countries have got both opportunities and challenges,and the optimization of resource allocation in the world scope.With the guidance of Chinese government "going out" strategy, more and more Chinese enterprises expand market from domestic to abroad, and integrate into the tide of economic globalization enthusiastically, which accelerate the evolution of internationalization obviously. The influence on enterprise bringing by internationalization has become the focus of the academia, Therefore, whether the operation performance of Chinese enterprises will be affected by globalization, whether the effect of different industries are consistent, that are the questions needed to be solved in this study.Based on analyzing the traditional theories of multinational companies, this paper analyze the mechanism of enterprise internationalization influence operation performance, the study found that the enterprise international have created favorable conditions to improve corporate performance; In the process of enterprise internationalization, enterprise performance changes dynamically; External factors and internal factors and changes in the transaction costs are the decisive factors, which affecting enterprise performance in the process of internationalization. Further more, the author conducted an empirical study on the influence of Chinese enterprise internationalization on business performance in this paper.Firstly,the author investigates the current situation and characteristics of the Chinese enterprise internationalization,then puts forward research hypothesis and empirical model.In the empirical analysis,the study selects 185 Shanghai and shenzhen A-share listed multinational manufacturing firms from 2005 to 2014 as the objects,and then sets up a panel data model so as to determine the connection between Chinese manufacturing companies globalization and performance. The empirical result shows that:(1) From 2005 to 2014, the relationship between the degree of internationalization of Chinese manufacturing industry listed companies and corporate performance is positively related;(2)Internal factors and external factors affect corporate performance in the process of internationalization;(3)Difference of industry result in the different correlation and effects between the degree of enterprise internationalization and the business performance.There are five sub industries:’electronics’,’petroleum, chemical, &plastic’,’paper-making&printing’,’textile,clothing&fur’,’medicine&biological products’,whose business performance is positively connected with the level of globalization.As for the rest of the few industries:’food & beverage’, ’metal&nonmetal industries’,there is no significant correlation between the degree of internationalization and performance.Finally, the author discusses the relevant policies of promoting internationalization of the manufacturing enterprises.