The Impact Of Internationalization Degree On Performance Of Enterprises

Since joining the WTO,Chinese enterprises have actively participated in international business activities,which once set off a wave of internationalization of enterprises.With the deepening of internationalization,many Chinese enterprises have acquired production resources,learned advanced technologies and management concepts,introduced excellent foreign talents and improved their comprehensive strength globally.However,some Chinese enterprises have failed or even been phased out in the process of internationalization.As the pillar industry of China's economic development,most of the manufacturing enterprises were labor-intensive in the early internationalization.China became the "world factory" based on cheap labor.However,in recent years,with the disappearance of China's demographic dividend and the saturation of domestic market,China's manufacturing enterprises have gradually lost competitive advantage due to the prevalence of trade protectionism in the world.In the process of internationalization transformation,enterprise innovation plays a much more significant role,which is regarded as the key factor to break down the barriers to internationalization of Chinese manufacturing enterprises.In this context,it is imperative to study the impact of innovation ability on enterprise internationalization and business performance.In this paper,489 A-share listed companies of manufacturing industry in Shanghai and Shenzhen are selected as the study subjects.The paper carries on empirical analysis on the relationship between internationalization degree and business performance of enterprises.In order to get a better understanding of the relationship between internationalization degree of listed A-share manufacturing enterprises in Shanghai and Shenzhen and their business performance,the innovation ability of enterprises is taken as the intermediary variable of the research model,and the asset liability ratio,enterprise scale and enterprise age are taken as the control variables.In addition,this paper uses five indicators,i.e.R & D investment intensity,R & D personnel proportion,total number of enterprise patents,per capita patents,and marketing investment intensity to reflect innovation ability of enterprises more comprehensively.In empirical analysis,firstly,constructs empirical analysis model and does multicollinearity test.Then the paper makes a regression analysis on the influence ofinternationalization degree on enterprise's business performance,the influence of enterprise's innovation ability on enterprise's business performance,the influence of internationalization degree on enterprise's innovation ability and the intermediary effect of enterprise's innovation ability.Finally,four conclusions are drawn:(1)The deepening of internationalization has a negative effect on business performance and show a "U" shape.(2)Among the five indicators reflecting the innovation ability,the proportion of R & D personnel and the total number of patents play an important role in promoting the business performance of enterprises,and the other indicators have a negative correlation with the business performance of enterprises in the current period.After a lag period,except for the intensity of R & D investment and the number of patents per capita,the other variables have a positive correlation with the business performance of enterprises.(3)The deepening of internationalization has promoting effect on the innovation ability of enterprises partially.(4)The innovation ability of enterprises plays an intermediary role in the relationship between the degree of internationalization and the performance of enterprises partially.