Heterogeneity Of Knowledge And Choose The Path Of Internationalization

Under economic globalization,"going out" has become an important strategicdecision to expand our business."Going out strategy" not only promote ourinternationalized economy, but also improve business performance. But experience showsthat a business could not be successful just because it’s strategic decision, select theinternationalization strategy may not be able to obtain international operations "bonus".Internationalization path selection is an important factor affecting the performance of itsinternational operations. The different path internationalization strategy betweenenterprises differences competitive advantage (Hill&Jones,2007) is the impact basicvariable of internationalization path selected.The New-new Trade Theory representative by Melitz (2003) uses businessproductivity heterogeneity to descript competitive advantage. Accordance to the theory, thelower productivity enterprises are difficult to pay the sunk costs can only choose domesticstrategy; higher productivity enterprises can afford the cost to choose export trade strategy;while the most productive companies have the ability to carry out international directinvestment strategy. Heterogeneous enterprise trade theory describes not only theconditions for implementation internationalization strategy, but also the generation causesof differences of enterprise internationalization path. However, this theory had beenquestioned from many aspects from the beginning. This article found another way, throughthe analysis of empirical data of different enterprises found that the firms that differencesin the path of international, its productivity is often at the same threshold range. This iscontrary the basic theory of heterogeneous enterprise as "productivity threshold overlap"became the starting point of this analysis. The starting point also means that the basic taskof this paper is to explore the core factor of decision-making behavior of enterpriseinternationalization path selection.International business is constrained by multiple factors. In the "multiple constraints" conditions, the matching degree of strategic decision-making behavior and importantfactors becomes a key step toward success.Therefore, this paper uses network AnalyticNetwork Process (ANP) comprehensive analysis each major dimensions that impact theinternationalization path selection and their relationship. Analysis of this level, the aim isdivided international strategy into the trade strategy and the investment strategy. Anddescript the dominant factor of the two strategies. The study found that corporateknowledge, reputation&brands, marketing channels are the dominant elements of thetrade strategy, and the formation of investment strategy mainly depends on the corporateknowledge, financial resources, technology suppliers and the support.Different strategieshave different leading factors, but the corporate knowledge is one of the largest weightfactor. In other words, enterprise knowledge heterogeneity, leading companies in theinternational path "split". Enterprise knowledge heterogeneity is also the reason thatenterprises to take "walking on two legs" in trade strategy and investment strategy in theinternationalization process.The formation reasons of knowledge of heterogeneity constitute another theoretical inthis paper. The paper according to the characteristics of enterprise knowledge formationand development, introduces the concept of corporate knowledge preference to explain thecauses of the heterogeneity of enterprise knowledge. Professional background and theability to study and work experience and other factors of core management team membersare the deep roots of the heterogeneity of enterprise knowledge generated. In this paper, inorder to permit a theoretical model, the author through questionnaires, and the use ofstructural equation modeling analysis, regression analysis, empirical testing of theoreticalmodels launched. Empirical results validate: knowledge of international corporatedecisions enterprise internationalization path; enterprise core team of background,experience and ability influence enterprise internationalization knowledge; enterpriseinternationalization knowledge stock is relevant with and range of internationalizationpositive.The paper analyzes have a certain theoretical and practical significance. The articlenot only theoretically explained under the given conditions of productivity, enterpriseknowledge heterogeneity is oriented reasons enterprise internationalization route choicedifferences behavior. The knowledge prefer determines the path of enterpriseinternationalization and locked it. In the case of enterprise knowledge matched with international strategy, business knowledge is the international competitiveness, it formed abusiness differentiated competitive advantage.This is in addition to the heterogeneity of theenterprise trade theoretical framework to explain the differences in the same enterpriseproductivity and its causes in the international strategy of choice. It follows that manyconclusions, such as matching corporate strategy and international business knowledge,knowledge heterogeneity and firm differentiated competitive advantage, dynamiccompetition and knowledge preference adjustment, as well as shaping the learningenterprise. The recommendations have a direct reference to enhance theinternationalization of Chinese enterprises operating performance. Of course, the majordrawback of this paper is thorough analysis of the process of form the heterogeneity ofenterprise knowledge is not enough, so the formation of enterprise knowledgeheterogeneity is the main direction of the article requires further study.