The Empirical Study Of The Relationship Between International Strategy And Enterprise Performance In China

Under the circumstances of economic globalization, Chinese manufacturing firms are confrontedwith a worldwide competition. It’s an inevitable trend for them to carry out internationalizationstrategy and it’s also an inevitable choice when they develop to certain phases. Whether internationaloperation can bring a good performance or not become a topic of common concern. Based on thedevelopment status of the internationalization of Chinese enterprises and the theoretical study of therelevant issues, we study the relationship between the internationalization of Chinese enterprises andtheir business performance.In order to make the study more effective, starting from the nature of the enterpriseinternationalization, international enterprise in China is divided into four categories based on the twodimensions: motivation and the entry mode of internationalization. Using China’s listing enterprisepanel data from2007to2011, we have analyzed the relationship between the internationalization andperformance. We measured internationalization through depth and breadth. The empirical resultsshow that there is a different relationship between internationalization and performance for enterprisestaking different international strategies. For “leaping and market-oriented” enterprises, the linkbetween performance and depth and breadth of internationalization is U—shaped； for “progressivemarket-oriented” enterprises, the relationship is inverted U-shaped； for “progressiveresource-oriented”enterprises, the relationship is horizontal S-shaped； For “leaping andresource-oriented”enterprises, the relationship is U-shaped. At the same time, firm size, asset-liabilityratio and firm age did not affect significantly on business performance...