The Impact Of Enterprise Internationalization On Innovation Performance

For a long time,innovation performance has been an important indicator for measuring a company’s brand value,competitive advantage,and operational efficiency.As market entities,companies are an important force in helping China become an innovative country.With the advancement of economic integration and the implementation of the "dual circulation" development pattern of "two markets and two resources," Chinese companies are no longer limited to external resources and innovation knowledge in the domestic factor market.Companies move towards the international market through internationalization strategies,and have more channels to acquire heterogeneous resources.However,facing the uncertainty of overseas markets,it remains to be seen whether companies can use external innovation resources to improve their own innovation performance,that is,whether the internationalization behavior of companies can improve their innovation performance,needed to be verified in the further research.Apart from this,research on the influence of enterprise globalization on innovation performance currently focuses mainly on the nature of corporate equity and financing efficiency,while further research is needed on the moderating role of a company’s absorptive capacity on the relationship between the two.Therefore,this article aims to explore the impact of the depth and breadth of enterprise globalization on innovative achievement,and to investigate the moderating effect of its absorptive capacity on this relationship,in order to provide some reference for companies to improve their innovation performance.Based on the above background,this article first reviews the literature on the definition and measurement of corporate internationalization,and then analyzes the impact mechanism of corporate internationalization on innovation performance from the two dimensions of internationalization depth and breadth,and examines the moderating effect of a company’s absorptive capacity.At the same time,based on the resource allocation theory and organizational learning theory,hypotheses are proposed regarding the influence of enterprise globalization on innovative achievement,and the moderating effect of a company’s absorptive capacity.In the empirical analysis,this article uses a fixed effects model to study Chinese listed companies from 2010 to 2020,and conducts correlation and regression analyses on the sample data to test the hypotheses.Finally,robustness test and endogeneity test are respectively carried out using key variable replacement and instrumental variables method.The results show that the depth of a company’s internationalization has a positive impact on its innovation performance,while the breadth of internationalization has a negative impact on it.As the depth of a company’s internationalization deepens,the company gains a deeper understanding of the host country,has more channels to acquire external innovation resources,and accumulates richer experience in conducting business activities overseas,which ultimately improves innovative achievement of enterprise.Nevertheless,as the breadth of a company’s internationalization widens,the risk of environmental uncertainty increases,and the company’s resources are diluted in different regions and countries,which is not effective to the innovative achievement of enterprise.Furthermore,this article adds absorptive capacity as a moderating variable and finds that it has a positive moderating effect on the relationship between the depth and breadth of globalization and innovative achievement of corporations.Companies with stronger absorptive capacity are better able to integrate external and internal resources,predict future market trends,enhance the positive impact of globalization depth on innovative achievement,and weaken the negative impact of globalization breadth on innovative achievement.According to the research findings in this article,policy recommendations are proposed for both the government and enterprises.As a policy maker,the government should first provide a comprehensive service system for enterprise internationalization;second,provide financial support for enterprise internationalization;third,promote the construction of industry organizations to facilitate joint development of international business by enterprises;and fourth,improve the legal system for protecting intellectual property rights.From the perspective of enterprises,the recommendations are:first,when formulating internationalization strategies,enterprises should focus on deepening the level of internationalization;second,enterprises should be cautious when making decisions regarding the breadth of their internationalization;third,enterprises should increase their investment in research and development,and improve their absorption capacity;and fourth,enterprises should recruit high-level talents with overseas backgrounds.