A Study On The Influence Of Entrepreneurial Characteristics On The Internationalization Of Small And Medium - Sized Enterprises

Traditional internationalization theory argues that enterprise size is an important factor in the process of enterprise internationalization. Moreover, in the process of going out, enterprise generally follow the unified development mode that is irregular export, export agents, the establishment of overseas sales subsidiaries and foreign direct investment. In addition, due to the constraint of psychological distance, institutional distance, geographical distance, in the process of going out, many enterprises are often choice the foreign markets, which have similar cultural, economic environmental, political environment and geographic location firstly, and then spread to the area in which the distance is farther or difference. However, with the change of market environment, more and more small and medium-Sized enterprise choose to enter the international market at the beginning of the foundation. Therefore, "born global", "instant internationalization" and "international new venture enterprise" have emerged. These enterprises break the routine to advance into the international market under the premise of lack of the traditional sense of scale advantage, or even lack of advanced knowledge and technological advantages.so the phenomenon has caused the wide attention of scholars at home and abroad. Small and medium-sized enterprises enter the international market, which means to participate in the competition in the new market environment. Therefore, there are scholars believe that the internationalization of small and medium-sized enterprises is actually a special kind of innovation. Moreover, innovation is the biggest difference between entrepreneurs and managers. As we all know, because the characteristics of small scale, simple organizational structure, flexible operating mechanism, small and medium-sized enterprises provide a more broad space to play the entrepreneurial ability. Therefore, the entrepreneurs play a pivotal role in the operation of small and medium-sized enterprises, comparing to large enterprises. The entrepreneur’s abilities is determined by the characteristics of their own, so this paper selects the entrepreneur characteristics as the Independent variable, to study their impacts on the level of internationalization of small and medium enterprises of China.At present, the domestic scholars use the entrepreneur network theory, upper echelons and resource-based theory, to explain the relationship between entrepreneurial characteristics and the internationalization of enterprises, but there are many problems. First, which entrepreneurial characteristics have an impact on the international behavior of enterprises, scholars have their own opinions under the different starting point; secondly, the theories adopted by scholars are obsolete, and the conclusions are different. Finally, researches of domestic scholars tend to developed countries and listed companies in our country, and empirical research on the relationship between SME entrepreneurs’ characteristics and internationalization of enterprises is a blank. Therefore, based on the existing international theory researches, we take China SME listing Corporation as the research object, the breadth and depth to the internationalization of small and medium-sized enterprises as the dependent variables, to explain the effects between the characteristics of entrepreneurs and the internationalization level of small and medium-sized enterprise. We also put forward some opinions and suggestions for the internationalization development of small and medium-sized enterprises, through the theory of entrepreneurial capital, upper echelons, modern stewardship theory and entrepreneur social capital theory. This paper mainly focuses on the following parts:Firstly, we research the characteristics of entrepreneurs, the internationalization of small and medium-sized enterprises and the impact of entrepreneurial characteristics on the internationalization of small and medium-sized enterprises, to find out the shortcomings of the existing theoretical. Secondly, based on the four theories, we put forward the potential impacts of entrepreneur characteristics on the internationalization level of small and medium enterprises. Finally, by collecting the statistics of Shenzhen SME entrepreneur characteristics and the depth and breadth of enterprise internationalization, using multiple linear regression analysis method, it shown that characteristics of entrepreneurs have some impacts on the small and medium-sized enterprise internationalization level. Based on empirical research, this article draws the following related conclusions:(1) Demographic characteristic factor:International experience has significant positive influence on the internationalization level of SMEs, entrepreneurs who have rich international experience could promote enterprises expand more overseas markets and set up more affiliates in the process of foreign direct investment; The education level of small and medium-Sized entrepreneurs has positive effects on the level of enterprise internationalization, and the effect is significant, which means high diploma or highly educated entrepreneur could promote the implementation of the strategy of enterprise internationalization more effectively; The age of small and medium-sized entrepreneurs has negative effects on the level of enterprise internationalization, but the effect is also not significant, it proves that age has no big influence on the implementation of the strategy of enterprise internationalization; The tenure of small and medium-sized entrepreneurs has a significant role in promoting the implementation of the strategy of enterprise internationalization, namely the longer tenure, the more conducive to the expansion of overseas markets; In the process of enterprise internationalization, women entrepreneurs have more impacts that are positive on the overseas markets.(2) Intelligence factor:When small and medium-sized entrepreneurs as chairperson and general manager at the same time, it will be more conducive to the implementation of internationalization strategy and this condition has significant positive effects on the internationalization level.(3) Political factors:The political association of small and medium-sized entrepreneurs has significant negative effect on enterprises’internationalization strategy implementation. That is to say, the domestic political resources of entrepreneurs have a negative impact on the expansion of overseas markets of enterprise.Finally, this article has carried on the further interpretation of the results of empirical research and put forward related suggestions. In order to expand the international market of SMEs furtherly, entrepreneurs could improve the entrepreneur capital by increasing international experience, extending the term of office, holding the post of general manager and so on. All of these can promote the implementation of the strategy of small and medium-sized enterprises internationalization.