| In the context of China’s rapid economic development,internationalisation has become one of the best options for the rapid expansion of many Chinese companies.Early papers on the internationalisation of companies have extensively discussed the potential benefits of internationalisation,but in reality the results have been mixed.As the internationalisation process of Chinese companies deepens,it is particularly important that companies are able to choose an appropriate international expansion strategy at a macro level.Unlike developed Western countries,Chinese companies have a late start and limited experience in the internationalisation process.During the initial period when the state was strongly encouraging "going global",many domestic companies showed an "aggressive" and "irregular" pace of international expansion,influenced by policy incentives and subsidies.In the long run,such a pace of expansion is not conducive to the sustainable and healthy development of Chinese enterprises in the international market.The high degree of uncertainty in the external environment has led to the need for a strong supervisory body to support the internationalisation strategy decisions of enterprises,and a Party organisation with Chinese characteristics has the natural leadership,cohesion and organisational power to help enterprises make sound internationalisation strategy decisions at critical junctures.It has been well documented that the Party’s involvement in corporate governance can exert a positive influence on all aspects of the company through ’two-way entry’ and ’cross-posting’.However,most of the previous studies have focused on the domestic market,and few have explored the impact of party organisation participation in corporate governance on companies’ overseas operations.This leads me to ask the question of whether and in what way party involvement in corporate governance affects the pace of internationalisation of companies.The logical framework of this paper is as follows: firstly,we review and summarise past studies on party organisation governance and the pace of corporate internationalisation in the literature,and identify the relevant theoretical and analytical framework that is applicable to the topic of this paper.Then,by means of an empirical study,the effect of party organisation participation in corporate governance on the pace of corporate internationalisation is examined using the data of listed companies in China from 2015 to 2019 as a sample.It was found that the involvement of party organisations in corporate governance can significantly influence the internationalisation rhythm of enterprises,and that enterprises with a deeper involvement of party organisations in corporate governance tend to engage in a regular and coherent internationalisation expansion rhythm.Further research found that the effect of party organisation involvement in corporate governance on firms’ internationalisation rhythm was more significant in firms with high quality internal controls.The article also finds that the effect of this influence mechanism is more pronounced in state-owned enterprises,after distinguishing the nature of the firm.By embedding the party organisation in the corporate governance structure,the party organisation can more effectively monitor and discipline the behaviour of managers,maximise shareholders’ interests when participating in major business decisions,ensure at source that all business decisions adopted are conducive to improving the efficiency and effectiveness of corporate operations,effectively curb the self-interested behaviour of executives,enhance the scientific and rational nature of corporate internationalisation decisions,and ultimately significantly reduce This paper is a theoretical and practical study.The research topic of this paper has both theoretical and practical implications.From a theoretical perspective,there is relatively little research on the dynamic internationalisation of companies,with most of the existing literature focusing on the characteristics of executives themselves,the independence and characteristics of the board of directors,or other aspects of corporate governance.This paper,however,discusses the impact of party organisation involvement in governance on dynamic internationalisation-the internationalisation rhythm-of enterprises from the novel perspective of party organisation involvement in corporate governance,broadening the scope of research related to internationalisation rhythm and enriching the literature in the area of internationalisation rhythm.In terms of practical significance,in recent years there have been numerous red-headed documents on the reform of state-owned enterprises in China,and the state government has increasingly focused on the leadership and organisational power played by party organisations at the grassroots level,especially the role of party organisations in decision-making levels related to major corporate matters.Therefore,this paper focuses on the study of the participation of party organisations in corporate governance,playing a macro-control role,taking the overall picture,seeking progress in a stable manner,slowing down the pace of internationalisation,and finding the rules for enterprises to carry out internationalisation to help them get better and better on the road to internationalisation. |
