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

With China’s accession to the World Trade Organization in 2001,General secretary Xi Jinping proposed ―the Silk Road Economic Zone‖ and ―the Maritime Silk Road in twenty-first Century‖ concept in 2013,China companies continue to accelerate the pace of the world,to go abroad,to actively participate in international competition in the market,so many domestic enterprises has been an important part of enterprise internationalization strategy into corporate level strategy.However,due to the acquisition of Al Carter TCL in a substantial loss,SAIC Ssangyong acquisition crashed in 2009 that are eager to the internationalization of enterprises sounded the alarm in 2006.Whether there is a certain relationship between the degree of internationalization and the performance of the enterprise,the deepening of internationalization will increase the performance of enterprises,or weaken the performance of enterprises? Domestic and foreign scholars hope that through theoretical analysis and empirical research,this paper discusses the relationship between the degree of internationalization and performance,which can provide effective reference for enterprises.However,previous studies based on the "international discount" or "international premium" theory,the default implementation of the scientific enterprise internationalization strategy can obtain the potential revenue maximization,ignoring the key factors of the relationship between the path of internationalization strategy can not be ignored in the enterprise to achieve the performance of the enterprise by enterprise,such as product diversification strategy,intangible assets investment variables regulation,so the conclusions of this study is not detailed enough.On the basis of theoretical logic reasoning,we construct the following logical framework: ―The influence of intangible assets investment on the relationship between the degree of internationalization strategy implementation and enterprise performance‖,and put forward the relevant research hypotheses.Further,we used the database of Wind and Csmar,the Ministry of Commerce 《1980-2014 Chinese foreign investment enterprise directory》 to collect relevant data of China’s Shanghai and Shenzhen A share listed companies in manufacturing industry,detailed verification of Listed Companies in the international strategic level and intangible assets investment level to enhance the value of the specific path.The empirical results show that the two dimensions of China the degree of internationalization of the enterprise internationalization depth(overseas sales accounted for the proportion of total revenue)and internationalization breadth(the number of countries involved in international businesses,these countries and the home market and the relationship between psychological distance)is not the same with the relationship between the rate of return on total assets of enterprises.For the Chinese manufacturing enterprises in the present stage,the breadth of internationalization has a positive effect on corporate performance,and the depth of internationalization has a negative impact on the performance of enterprises.Further on the regulation effect of intangible assets investment,the intangible assets of the enterprises in the current or excluding land ownerships’ intangible assets on the depth of internationalization and corporate performance are negatively related to weaken but not significant,on the internationalization breadth and enterprise performance significantly weakened the positive relationship.On the one hand,the conclusion vivificated that there is a certain lag between the input and output of intangible assets and the current intangible assets investment will consume the enterprise resources and reduce the enterprise income.On the other hand,the increase in the quantity and quality of the intangible assets such as patents,software,R&D and other non land use rights will have a positive effect on the performance of international enterprises.Compared with previous studies,this paper from the perspective of the whole process of international strategic management discussed how to manage the intangible assets investment and the relationship between the internationalization strategies to better respond to the challenges,ultimately to achieve high revenue targets.At the end of the article,the limitations of the study are explained.