Research On The Relationship Between Low Level Performance Feedback And Internationalization Speed Based On Firm Behavioral Theory

As China’s economy is growing as an open economy, more and more enterprises tend to go abroad to highlight it’s value on the international stage. While as the Chinese enterprise internationalization process starts late, it appears to accelerate, jump which is not consistent with traditional internationalization mode, and these characteristics are closely related to the decision behavior of the firm in the internationalization, then it is of great significance that conduct researches about the relationship between decision-making behavior and speed. Moreover, since they starts late, Chinese enterprises are confronted with many challenges in the process of accelerating the internationalization even for the excellent representative domestic enterprises such as Lenovo and Huawei, then it is much more significant to explore the effects of decision behaviors on accelerating internationalization when enterprises are faced with different operating conditions.The firm behavioral theory are put forward by Cyert and March in 1963, and it regard the whole of the enterprise as a research object to discusses the actual decision making process of the enterprise combining enterprise theory and organization theory. Performance feedback is one of the important concepts in the firm behavioral theory, and it explains different kinds of enterprise decisions according to the difference between the actual performance and the desired performance. International speed is the core concept of the enterprise internationalization process, and it is the embodiment of the real strategic decision of the enterprise. Moreover, it can be used to explain the internationalization process through multiple perspectives including the depth speed, the velocity speed and the change rate of the speed. In order to focus and deepen the research problem, this article is dedicated to investigate the effects of performance feedback on the internationalization speed. In consideration of the current situation of Chinese enterprises, the study is mainly to probe the low level performance feedback influence on enterprise internationalization speed, and the concept "performance feedback" are all refer to the low level performance feedback. Three moderating variables are added to this study respectively including the state control (the internal governance level), the resource redundancy (the organization level) and the degree of competition in the market (the external environment level) to provide a comprehensive analysis to the research problem.The data of this paper originates from the company’s website, the Shanghai stock exchange, Shenzhen stock exchange, the annual report of listed companies, the tide of information network, CSMAR database, etc., and it has a total of 220 listed companies in 2007-2013 panel data for seven years. With the help of the statal2.0, the regression results shows that when the history performance feedback or the social performance feedback less than zero, the companies always tend to accelerate internationalization to search the first-mover advantage for the improvement of the current performance, and when both of the two kinds of performance feedback are lower than zero, the enterprise tend to accelerate the internationalization as well. Moreover, it finds that the GYG, the slack as well as the competition all have a big influence on the relationship between performance feedback and speed, and when the historical performance feedback less than zero, companies with high state control are reluctant to accelerate while companies in high marketing competition would tend to accelerate more. When the actual performance of the enterprises are lower than the industry expected performance, companies who have abundant resources or companies with high level state control will tend to accelerate more since they are capable to cope with the risks.