Research On The Relationship Between Performance Feedback,Management Power And The Speed Of Corporate Internationalization

With the global economic recovery,China's foreign investment has shown obvious rapid internationalization characteristics in the past decade.As a catcher of international competition,the internationalization of "accelerated" Chinese companies is often seen as "adventurous radical" behavior.The "speed" of enterprise internationalization has gradually attracted the attention of scholars in the field of international business and strategic management,and is considered to be one of the important factors determining the internationalization performance of enterprises.Some studies have portrayed the speed of internationalization,and on this basis,discussed its pre-influence factors,and concluded that the decision of the company's international management may be affected by the previous business situation,but the conclusion of the relationship between the two However,it is not consistent,and the influence of management as an international decision maker is less concerned.Then how will the prebusiness status of the company affect the subsequent international business decisions? At the same time,what role does management play in the process of making decisions based on prebusiness conditions?Therefore,this study is based on the theory of corporate behavior to explore the impact of performance feedback on the speed of internationalization of enterprises,and based on the principal-agent theory to study the regulatory role of management power on this relationship.Taking 1442 foreign investment events of 206 listed companies in China as samples,the data needed for research were obtained from databases such as Wind and Csmar.The following conclusions were found through regression analysis:(1)With the change in the degree of relevance of performance feedback,corporate performance feedback will experience two stages from high inconsistency to highly blurred and highly fuzzy to highly consistent.As performance feedback shifts from highly inconsistent to highly ambiguous,management will make decisions to slow down internationalization due to the impact of reduced pressure(catch-up pressure or survival pressure),with high performance blurring as performance feedback The shift to a highly consistent situation has led to a gradual increase in the “catch-up pressure” or “survival pressure” that management has been motivated to increase its motivation for internationalization.(2)The level of management power will affect the management's interpretation and “use” of performance feedback signals,and will also affect the ability of enterprises to strengthen their will and preferences in the decision-making process,and influence the process and outcome of corporate decision-making.When management has higher power,in the inconsistency of performance feedback based on two reference points,management masks the degree of unfavorable information to themselves.When fuzzy performance feedback,management uses “fuzzy information”."The ability is stronger,and when faced with consistent performance feedback results,high power will give management a higher psychological commitment,which will reduce the pressure on the results of different performance feedback,thus inhibiting the internationalization caused by performance feedback.The change in speed.And get the following management inspiration:(1)Enterprise management may simplify the decision-making process according to its own experience.However,this will cause the company to have a cognitive bias towards the current operating conditions.Therefore,when the company makes the next decision based on the previous development,the management should actively select multiple expectations.Reference points,in order to make the final decision more comprehensive,and seek a development path that suits them,so that the company can continue to grow;(2)When the management makes decisions on the internationalization behavior of the enterprise,it will be affected by the interpretation of the performance feedback signal in the previous period.Therefore,the management of the enterprise should recognize its limited rationality and rationally analyze the inconsistent,vague and consistent results of performance feedback so that the decision is more in line with the actual needs of the enterprise.For example,when performance feedback is highly inconsistent and highly consistent,the internationalization speed of the enterprise may be very fast,which makes the enterprise fall into excessive risk;when the enterprise feedback is highly blurred,the enterprise may slow down the internationalization speed and miss the development opportunity.;(3)during the corresponding international decision-making,stakeholders should be aware that the management of bounded rationality,and should be recognized that the management authority will affect the reading for corporate management performance feedback signal.Therefore,enterprises should strengthen stakeholders in corporate decision-making in international supervision,to keep them open internal information to construct rigorous institutional framework,strengthen the supervisory role of the board of directors,management has to be alert to the situation of excessive powers to circumvent power management because it is too high lead to excessive influence by preference in performance feedback signal interpretation process,to prevent their unfavorable factors,in order to make reading unbiased feedback on performance management to exercise its power to cover up performance feedback signal,the in line with international companies to make their own decisions,and environmental requirements.