Degree Of Internationalization And Operating Performance

This study mainly analyzes the influence of the degree of internationalization on the performance of enterprises.On the theoretical side,the theory of comparative advantage,monopoly advantage theory,product life cycle theory and international production eclectic theory summarize the theoretical basis of the influence of international operation on its business performance.Then it summarizes the current situation of the internationalization of Chinese enterprises,analyzes the motivations of the internationalization of our enterprises,the competitive advantages and disadvantages of our country's internationalization,the benefits and the potential risks that can be realized in the internationalization process.The empirical part is based on 1903 manufacturing companies listed on Shanghai and Shenzhen Stock Exchange,and analyzes the relationship between the degree of internationalization measured by the proportion of overseas sales to total sales and the business performance measured by the total return on assets.The results show that: First,in general,China's manufacturing enterprises in the degree of internationalization is not high,a considerable part of the internationalization of enterprises by export to achieve;second,from the overall regression results,the degree of enterprise internationalization of the business performance has a significant positive impact;thirdly,after the grouping regression analysis of manufacturing enterprises according to the degree of internationalization,the author finds that medium degree of internationalization can best promote the improvement of business performance;fourthly,according to the classification standard of the manufacturing industry,the author divides the sample company into ten manufacturing sub-sectors,and analyzes the regression analysis.The empirical results show that the industry difference will affect the relationship between the internationalization degree and the business performance.The possible innovations of this study:1.This paper divides the enterprises of internationalization of manufacturing industry into low,medium and high three groups according to their internationalization degree,and explores the different degree of internationalization to promote or suppress the performance of the company.2.In the past,the related research has been analyzed by using the cross-sectional data of one year.The sample selected in this paper is 1903 listed companies in China's manufacturing industry.Each index contains the observation value from 2005 to 2015,the data is more complete,the sample size is larger,this approach is more representative.