Enterprise Internationalization Of The Mechanism Of Growth

This paper first focuses its attention on the theoretical discussion of the internationalization of firm in the academic field of international business studies. Through fully review of the research advances and theoretical developments made during the last decades, this paper tries to assess the strong points and shortcomings of every theory objectively. It then briefly reviews the mainstream theory of multinational firm—internalization theory. Meanwhile, internalization theory is compendiously compared with evolutionary theory of multinational firm from several aspects, based on which a summarization of the shortcomings of the former is presented, including: ①externalization of the rent of governance mode, ②permanent existence of market as a mean of resource distribution, ③overemphasis on opportunism as an assumption of human behavior, ④avoiding the existence of uncertainty, ⑤rationality asymmetry in production and trade, and ⑥isolation of individual trading. Based on those shortcomings, this paper proposes the aims of the attempted modification of it, which includes: ①to overcome the assumption of the externalization of rent of governance mode, and to let the internalization theory get rid of the constraints imposed by static and comparative static analysis, ②to put emphasis on uncertainty and bounded rationality, and to lessen the role played by opportunism, and ③to restore symmetry in both production and trade, etc.By employing the method developed by Dietrich (1991, 1994), this paper modified the internalization theory and instilled some critical dynamic factors of evolutionary theory into it, which to some extent accomplished the aims set beforehand. Then three testable hypotheses are developed, which are tested in the final chapter of this paper. By using the available data of electronic manufacture firms of China provided by the Ministry of Information Industry, we test the modified theory. The result confirms the hypotheses to a certain extent. Finally, we discuss the drawbacks of the empirical work and its possible development in the future.