Party Organization Embeddedness And Internationalization Strategy

Nowadays,With development of the economicglobalization,internationalization strategy has become an improtant means for enterprises to explore global resources,open up overseas markets and acquire advanced knowledge and technology.At present,the Party Organization of the state-owned enterprises(SOE)has already become an indispensable part of the internal governance structure of the company.In the contect of accelerating the global reconstruction of the new pattern of double-circle development at home and abroad and the restructuring of globalization,the Party Committee of the SOE plays a vital role in the distribution of overseas markedts.The SOEs should strengthen the leadship and construction of the party in an all-round way,promote the development of overseas market with high-quality Party building,lead the new normal of economy with the new work and systematically grasp the integrity and coordination of transnational business strategy.Party organizations are organically embedded in the corporate governance of SOE through "two-way entry and cross-appointment" to strengthen party leadership in the new era,promoting enterprises to use external resources through internationalization strategy and cultivating core competitiveness of the beneficial exploration.So,under the backround of deepening the reform of SOEs during the 14 th five-year plan period,can the core leading role of the Party Organization of state-owned enterprises effectively integrate with the various links of corporate governance to improve the international competitiveness of enterprises?As an important form of institutional embeddedness in the Chinese context,in order to test whether Party Organization embeddedness supervises implementation of enterprises’ internationalization strategy and thus enhances international competitiveness,based on the existing research on internationalization strategy in international business and from the "dynamic" perspective,based on 2010-2018 a-share state-owned listed companies empirical test,this paper investigates the relationship between the embedding of the Party organization and the internationalization strategy,and draws the following conclusions: First,the embedding of the Party organization into the corporate governance of SOE can effectively improve the speed of the internationalization and speed up the pace of “going out”;The "two-way entry and cross-appointment" of the Party Committee with the Board of Directors,Supervisory Board and Senior Management has a significant effect on the internationalization,and it is more obvious than the "cross-appointment",the Party Organization embeddedness promotes the SOE strategic reform through "two-way entry" the function is more obvious.Second,when the overseas institutional environment is quite heterogeneous,the Party Committee of SOE can effectively exert the function of "Supervisor",restrain the rapid international expansion of enterprises and the irregular rhythm of internationalization,and further expand the scope of internationalization.Third,with the attention of analysts,the "inflow" of fresh blood and the increase of international directors,the governance effect of the Party organization embedding to the internationalization strategy is better;however,in the commercial class and local SOE,the effect of the Party Organization embeddedness on the internationalization strategy is not good.Fourth,based on a case study of the Shenzhen Zhongjin Lingnan Nonfemet Company,it is found that the embedding of Party organizations can effectively promote the strategy and change of internationalization of rapid and geographical diversification,to help enterprises realize the importance of internationalization strategy,to properly encourage enterprises to speed up the pace of "going out",adjust the pace,and appropriately expand the scope of investment in overseas markets.This research enriches and consummates the theoretical research between the Party organization embedding and the internationalization strategy,complements the situational mechanism between the Party Committee of SOE and the internationalization strategy,and deepens the understanding of the internal logic of the foreign investment decision-making of state-owned enterprises,chinese enterprises to enhance the importance of internationalization strategy so as to grasp the strategical opportunity.The conclusion of this study can be used for reference to improve the international competitiveness and shape the "promising" Party Committee of SOE in the new era.