The Research On The Relationship Between The Degree Of Internationalization And The Enterprise Performance

Economic globalization is one of the most important changes in the external environment since twenty-first Century. The competition among the same type or the neighboring enterprises around the word have brought the challenges but also the opportunities to our enterprises. In recent decades, many companies in our country participate in the international competition actively. They move forward firmly and face the challenges bravely, however, more enterprises are under a hesitant situation, they just wait-and-see passively. Under this kind of background, the research on the relation between the process of enterprises internationalization and enterprise performance is significant.Since the middle of the last century, the research on the relation between the degree of internationalization and corporate performance has been paid more attention by the academic circle. The existing research basically agrees that enterprises in the process of international business development have obvious characteristics of the stage. The S or reverse S relation which is the "syllogism" relation has become the mainstream direction. Under the base of integration and exploration of "syllogism" theory, this research analyzes the domestic automobile enterprises panel features data (form 2005 to 2009). By the way of descriptive statistical analysis, correlation, FGLS regression etc. the empirical analysis proves the defects of the existing theory, S-shaped or inverted S-shaped curve cannot describe the relation between the degree of internationalization of the firm performance.Research results show that the performance of enterprises presents four distinct stages along with the enhancement of the degree of internationalization, the relationship between the two shows M curve. In the process of ascension of international level, the enterprise performance has four stages. The M curve is the comprehensive summary of the changes of the two.