An Empirical Research Of Relationship Between Internationalization And Performance

In recent years,with the advancement of”One Belt and One Road" strategy,many companies in China is involving economic globalization and multinational companies is developing rapidly.Enterprises in China go abroad with international strategies and attempt to take a seat in the international market for the sake of revenue.But,the competition is becoming increasingly fierce in the international market,particularly within supply chain,which consists of various partners such as consumers,suppliers,manufacturers,distributors,and service providers.Thus global supply chain management is paid more attention to meet the trend.However,the relationships between the three remain unknown,as well as the intermediary role of supply chain management practice between internationalization and corporate performance.This research puts forward the model and hypothesis involving mutual influence of internationalization,supply chain management practice and corporate performance,and explores the mediating effect of supply chain management practice between internationalization and corporate performance.First,hypotheses are proposed based on the concept model established about mutual influence of internationalization,supply chain management practice and corporate performance.The ratio of export sales revenue to main sales income is chose as explanatory variable to represent internationalization,the asset return rate(ROA)as interpreted variable to represent corporate performance,corporate scale,corporate age and debt asset ratio as control variables.The regression model is established to examine the above hypothesis.Then,companies of China's automobile manufacturing industry are selected among the WIND database,international companies and non-international one are classified.The correlation analysis is conducted on the international companies to give primary correlation within variables.Finally,multiple regression analysis shows that internationalization and supply chain management practices have positive impact on corporate performance,and that internationalization positively affect supply chain management practices,and most importantly,supply chain management practices play a mediating role between the two.