Research On The Impact Of Internationalization Strategy On Corporate Performance

With global economic integration constantly being called, being a multinational company is prevailing around the world when company runs at a certain extent. Whether international operation can improve corporate performance has become a hot topic in the field of international business. So what kinds of internationalization strategy can help to improve corporate performance? In the perspective of internationalization theory, internationalization management helps enterprises to increase market share, access to economies of scale and scope, and ultimately achieve the maximization of enterprise performance. Unfortunately, both domestic and foreign empirical analysis on relationship between internationalization and company performance results are inconclusive and even contradict. There are main two aspects, liner and curve relationship. At beginning of internationalization, there are only liner relationships. There are non-linearity, positive linear correlation and negative linear correlation. However, with internationalization becoming deeper and international competition becoming more complex, some other relationships come to being, such as inverted U-shaped form, U-curve form, S-curve form. Among all of literature, most of scholars pay much attention on the relationship of internationalization degree and enterprise performance as a point to research, or analyze strategy types, performance isolate. There is little literature to analyze what influence of different types of international strategies make on corporate performance deeply and comprehensively.Based on above thesis analysis and roundup, paper selects sample of China’s automobile industry listing Corporation data from 21 companies to do empirical analysis, aiming at exploring relationship of corporate performance and different international strategies. And try to find out what kinds of international strategy can help to enhance corporate performance much more. What’s more, whether there are time-dependent effects also is taken into account. In order to work out those problems, firstly, adding literature home and abroad to present and summarize the shortcomings from current research in this field, and then at the perspective of international theory, trying to find reasons to motivate enterprise to go abroad. What’s more, adding with theory of internationalization of developing countries laborites further the necessity of companies in our country to choose internationalization to run. Secondly, studying on China’s Automobile Industry internationalization present situation at the method of SWOT, and pointing out achievements and shortcomings in the process of internationalization. At last, paper explores the certain dynamic effects which international strategy makes on firm performance by empirical analysis of the panel data. The research results show that:In the process of internationalization, China’s industry enterprises’internationalization is very low. What’s more, there is two kinds of significant class differentiation phenomenon. The degree of internationalization and corporate performance is positive correlation in earning capacity while financial leverage appears negative correlation, through the empirical analysis of China’s Automobile Industry. Combined with the present situation of internationalization of certain industry and country development, what can be found is nothing but to choose stable strategy of internationalization type contributes more to enhance corporate performance. In addition, the empirical results show that, with time goes by, the implementation of international strategy helps to improve the performance of enterprises appears different results.This paper aims to analyze the certain relationship between internationalization strategy and corporate performance, so as to explore what kinds of international strategies can improve firm performance most.Based on above empirical results, as aspect of corporate, the paper can supply some valuable advice and idea for our China’s automobile industry on improving their corporate performance and enhancing international competitiveness. As aspect of government, also can make contributions to how to make formulations of polices and regulations in future and explain why make such regulations. Eventually, speeding up process of internationalization, makes our country transfer from "big manufacturing country" to "powerful manufacturing country".