Research On The Relationship Between Performance Relative To Aspirations And SMEs' Internationalization Speed

With the economic development strategy of “going out” and “Belt and Road”,the international development of Chinese enterprises has shown a very broad prospect,and more and more enterprises have begun to implement internationalization strategies.However,SMEs will be limited by their own resources in the process of internationalization,and the traditional view of resource base does not apply.From the perspective of managers,this study starts from the perspective of managers' attitudes toward risk,and proposes that the gap between actual performance and expected performance of enterprises will affect the managers' tendency toward internationalized risk and affect the speed of internationalization.Based on prospect theory and strategic choice theory,this study studies the relationship between the performance relative to aspirations and the internationalization speed of SMEs,and the adjustment effect of organizational agility and institutional distance on the relationship between performance relative to aspirations and SMEs' internationalization speed.The study used 593 Chinese manufacturing SMEs in 2013-2017 as a sample and found that:First,there is a U-shaped relationship between the performance relative to aspirations and the SMEs' internationalization speed.When the enterprise performance is lower than the expected value,the manager's tolerance to risk is increased,and the manager is more inclined to increase the speed of internationalization.When the performance relative to aspirations becomes smaller,the manager's ability to withstand risks is reduced,and risk avoidance is often chosen.When actual performance exceeds expected performance,past successful experiences enhance the confidence of managers,and the tendency of managers to accelerate internationalization may increase.Second,organizational agility enhances the U-shaped relationship between the performance relative to aspirations and the speed of internationalization of SMEs.Highly agile companies can adapt to environmental changes through efficient use of knowledge,respond quickly to market changes,and control international market risks and uncertainties,which will help increase the risk of managers taking risks.Third,the institutional distance weakens the U-shaped relationship between the performance relative to aspirations and the speed of internationalization of SMEs.The high institutional distance makes it difficult for companies to establish external legitimacy in the host country,and increases the cost of internationalization.Managers may show more risk aversion behaviors and avoid investing in countries with large institutional distances.The research conclusions enrich the relevant research on the speed of internationalization,further enrich and develop the theoretical framework of managers of Chinese SMEs' internationalization speed,and provide certain management enlightenment for the internationalization of SMEs in China.