Internationalization Of Enterprises And Business Performance: Moderating Effect Of Marketing Investment And R&d Investment

With the development of economic globalization,the internationalization of enterprises is becoming more and more popular.The world bank's takes a forecast of the normal GDP growth of the economic entities,which showed that by 2020,Asia of which China is one economic core-the new emerging economic entitywould reached an explosive growth.Under these circumstances great deal of foreign investment and further development of enterprise internationalization are the necessary way for China's economic development.So,investigating the relationship between internationalization of enterprises and business performance is an important issue before the enterprises implement international strategy.In this paper,I do regression analysis of the relationship between enterprise internationalization and performance basing the 2011-2016 panel data of Chinese manufacturing enterprises listed in Shanghai and Shenzhen Stock Markets with Stata12.0.It is found that performance is not as effective as we expected in the initial stage of internationalization of Chinese enterprises.On the contrary,the degree of internationalization and enterprise performance in this period is negative correlation.As the improvement of the company's internationalization level,the performance of the companies have declined.But when the degree of internationalization of the enterprise is more than 32.19%,the relationship between the degree of internationalization and the performance of the enterprise changes,and the enterprise performance rises with the increase of the degree of internationalization.On this basis,this paper further investigates the regulatory role of enterprise marketing input and R & D investment on the relationship between enterprise internationalization and performance,concluding that the marketing input has a U regulating role on the relationship between enterprise internationalization and performance and the investment of R & D has no significant moderating effect on the relationship between internationalization degree and performance.At present,international marketing investment of Chinese manufacturing enterprises is low and it regulates the relationship between internationalization and performance negatively.Therefore,it is suggested that the enterprise should regard the internationalization as a long-term process,and do not negate the significance of internationalization because of the poor performance in initial stage.At the same time,enterprises should increase the investment of international marketing so that marketing can become a powerful means to promote the performance level in the process of enterprise internationalization.Enterprises also can try to reduce the dispersion of R & D investment appropriately,so as to reduce the direct negative impact of R & D investment on the international performance of enterprises.