The Influence Of Internationalization Degree On Business Performance

With the development of economic globalisation,many Chinese enterprises have embarked on the path of internationalisation.On the one hand,internationalisation helps enterprises to obtain production resources and absorb advanced production management technology on a global scale,thus enhancing their competitiveness;on the other hand,it also exposes them to the risk of being eliminated from the market due to their inability to adapt to the internationalised business model.Based on this phenomenon,more and more scholars have begun to study the relationship between the degree of internationalisation and business performance.However,most of the current studies on the relationship between the two have the following two characteristics: Firstly,they mainly focus on manufacturing enterprises,and the research scenarios are mostly focused on developed countries,while there are not many empirical studies on enterprises in developing countries and strategic emerging industries.Secondly,the direct impact of internationalisation on business performance is mainly based on the resource-based view,while the "black box" between the two has rarely been opened.As a developing country and an important industry representing the level of scientific and technological development in China,it is of significance to study the impact of the degree of internationalisation on the business performance of enterprises in China’s strategic emerging industries.Based on the existing studies on internationalisation,this paper analyses the relationship between the degree of internationalisation and business performance of enterprises from a capability perspective.The paper selects innovation capability,which best reflects the core competitiveness of enterprises,as a mediating factor and analyses the role of innovation capability in the relationship between internationalisation and business performance.After reviewing the literature on internationalisation,innovation capability and business performance,this paper finds that there is a paucity of literature that analyses all three in the same research model.Based on this,this paper proposes a research model that covers internationalisation,innovation capability and business performance to investigate whether there is a mediating effect of innovation capability between the two.This paper uses 3052 data collected and screened from the Guotaian database of A-share listed enterprises in China’s strategic emerging industries from 2012 to 2021 to empirically analyze the interrelationship between internationalization,innovation capability and business performance of enterprises in China’s strategic emerging industries using a panel fixed-effects model and a mediating-effects model,and finds that:internationalization has a negative effect on enterprise performance and innovation capability,while innovation capability has a positive effect on enterprise business performance,and enterprise innovation capability has a mediating effect between the two.After further validation of the results using the mediation effect test procedure,it is found that innovation capability plays a partial mediating role between the two.This paper uses a theoretical and empirical approach to explore the mechanism of the effect of internationalisation on business performance of Chinese enterprises in strategic emerging industries from the perspective of their innovation capability,in order to open up the "black box" between internationalisation and business performance and help the internationalisation of Chinese enterprises in strategic emerging industries.