Research On The Relationship Between The Degree Of Internationalization And Performance Of Resource-based Enterprises

Resource-based enterprise has a large dependence on resources and location,it has negative externalities and low value-added products,relies on the consumption of resources to achieve growth and its core competitiveness is resource advantages.Resource-based enterprise plays a very important role in China's foreign direct investment.According to statistical data analysis,by the end of 2015,Chinese FDI stock of mining industries was 123.73 billion,accounted for 14% and the proportion passed 50% if add the oil and gas industries' investment stock.When resource-based enterprises in China go abroad to do international business,there are a number of success stories at the same time there are some failures,which indicates that there are significant differences among resource-based enterprises' performance.Currently existing researches show that there are few studies on resource-based enterprises internationalization.Most researches put resource-based enterprises and international manufacturing companies together generally,it cannot describe the speciality of resource-based enterprises internationalization.In this paper,Chinese resource-listed firms are used as examples to analysis the relationship between international level and the performance in Chinese resource-based enterprises.Firstly,sorted out of researches on the relationship between international level and the performance of different companies,tried to understand the development of the theory of international business and the definition of corporate performance and its evaluation criteria.Secondly,introduced the definition,characteristics,international motives and problems of resource-based enterprises.Thirdly,made an empirical study design,put forward the hypotheses,selected dependent variable,independent variables and control variables.Resource-based enterprises international operations is a continuing production activity,the current business performance may be influenced by both historical and current performance variables,dynamic paneldata model which contains time series and cross-section sequence was best to be chosen.Finally,selected 40 resource-based enterprises which had overseas operating revenues in 9 years consecutively,extracted the data from each company's annual reports,used the system GMM dynamic panel method to estimate the parameters of the model to control endogeneity problems effectively and made conclusion as follow:there is U-shaped relationship between international level and the performance in Chinese resource-based enterprises.At the beginning of internationalization,large-scale investments like established resource exploitation bases and opened up overseas markets would lead to high costs,but when the international level exceeded a critical value,the company's overseas operations would get benefits.This conclusion has a certain significance for our resource-based enterprises operating overseas.Early transnational business performance reduce is a normal phenomenon,with the accumulation of investment experience,enterprise performance will eventually rise with the high level of internationalization.