An Empirical Research On The Relationship Between Internationalization And Enterprise Performance From Institution-based View

Although the Chinese government "Bring In and Go Out" strategy is productive at promoting national economy and foreign relations, presently Chinese multinational companies still generally have low international performance. Under the premise of knowledge becoming multinational companies’competitive advantage source, this paper argues that the liability of foreignness is fundamental reason impeding multinational companies getting knowledge spillovers from the host country and obtaining higher enterprise performance. Clarifying relation of legitimacy,embedding and internationalization, this paper studies the relationship between internationalization and the enterprise performance and the common mechanism, and takes the China manufacturing A shares listed companies as the research objects to test the hypotheses.This paper mainly organizes the research from the institution-based view. Based on reviewing the key concept of institution-legitimacy and network embeddedness, we analyze the influence of internationalization degree on enterprise performance from the three dimensions of legitimacy:standard legitimacy, regulation legitimacy and cognitive legitimacy, and put forward the theoretical assumption. At the same time, this paper discusses the effect of research and development on enterprise performance from the internal network embeddedness and external network embeddedness, and the influence of the internationalization of R&D investment in the degree of influence, and comes up with the corresponding hypothesis. In addition, this paper also distinguishes elder enterprise and younger ones in their willingness of R&D investment from growth phase, mature phase and decline phase, and proposes the corresponding hypothesis. Finally, the paper constructs a concept model, in which the internationalization degree as the independent variable, enterprise performance for the dependent variable, R&D investment for the intermediary variable, and enterprise international experience for the adjusting variable.The paper is an empirical research. Through manual sorting of the listed company annual report and the prospectus, a total of61valid data are collected. This paper uses the SPSS software to deal with the survey data of61manufacturing multinational companies in the year of2008,2009and2010to test the proposed theoretical assumptions and the conceptual model. The empirical results show that, in the international expansion process of China’s manufacturing multinational companies, the degree of internationalization and the enterprise performance are positively related, R&D investment plays a partial intermediary role in the relationship between the above two, and the company age negatively adjusts the relationship strength of R&D input and performance of the company. The paper finally summarizes the main research conclusions, puts forward some suggestions for manufacturing multinational companies to enhance the core competitiveness and performance, and expounds the researcl limitations of this paper and future research prospect.