The Effect Of Internationalization Speed On Innovation Efficiency Of Chinese Manufacturing Enterprises

In the context of economic globalization,Chinese manufacturing companies are actively responding to the national "Going-out" policy by engaging in international operations and exploring their own path for development.Due to the continuous progress of "The Belt and Road Initiative",it has become easier for Chinese manufacturing to expand globally.This has led to an increased demand for high-quality and affordable export products in the global market.Thus,there have been "fast" and"accelerated" "internationalization characteristics in the process of "going out".However,behind the appearance of "acceleration",the internationalization of Chinese manufacturing enterprises is not straightforward.Chinese manufacturing firms face significant pressure from both ends of the supply chain in the global market,with their lower and middle position of the global value chain.The degree of modernization is not very high,falling into the quagmire of "big but not strong,complete but not excellent".If Chinese manufacturing enterprises want to "go out" better,and improve their innovation capabilities and operational efficiency during the process of international expansion,Chinese manufacturing firms need to identify the optimal speed of internationalization and decrease their reliance on foreign technology.Therefore,the paper aims to explore the speed at which to enhance the innovation efficiency of Chinese manufacturing companies,this can serve as a valuable guideline for Chinese manufacturing firms to develop their own internationalization strategies.Based on the above background,this study focuses on A-share listed manufacturing companies in China between 2011 and 2021,examines the effect of internationalization speed on innovation efficiency by analyzing two types of internationalization speed: based-depth internationalization speed and based-breadth internationalization speed.First of all,by conducting an extensive review of the literature,the possibility among the depth-based internationalization speed,the breadth-based internationalization speed,and the innovation efficiency of enterprises is summarized and sorted out.Secondly,drawing on the present state of development of Chinese manufacturing companies,briefly outline their current status in terms of innovation and internationalization,and offer some points of reference for the subsequent research hypotheses.Thirdly,based on the theory of LLL framework,springboard perspective,and the theory of time compression diseconomy,the research hypotheses of this paper are proposed,and meanwhile,the specific indicators for measuring the research variables are clarified.The efficiency of enterprise innovation is defined as the explained variable;the depth-based internationalization speed and the breadth-based internationalization speed are defined as explanatory variable;enterprise profitability,enterprise absorptive capacity,net profit rate of enterprise,capital structure of enterprise and equity concentration are defined as control variables.The next step involves using panel data model to carry out regression analysis on the computed data to test the research hypothesis and arrive at analytical findings.Based on the empirical conclusions,suggestions will be made to provide a theoretical framework for the international expansion of listed manufacturing companies in China.For the empirical analysis,firstly,this study begins by utilizing the SBM model to gauge and compute the innovation efficiency of the company.Subsequently,statistical and correlation analyses are performed on the sample data to identify the fundamental relationships among the data.Secondly,this study establishes the empirical analysis model,performs regression analysis on the collected data,and the results were tested for endogeneity,robustness,and heterogeneity;then the following empirical analysis results were obtained:(1)There is an inverted U-shaped relationship between depthbased internationalization speed and the efficiency of enterprise innovation.Too fast or too slow depth-based speed is not beneficial for improving enterprise innovation efficiency.(2)There is an inverted U-shaped relationship between breadth-based speed internationalization speed and enterprise innovation efficiency.Too fast or too slow breadth-based internationalization speed is not beneficial for improving enterprise innovation efficiency.(3)The mechanism of the two types of internationalization speed and innovation efficiency is different owing to the nature of property rights.The specific performance is that the two types of internationalization speeds of state-owned enterprises reach the critical value of the U-shaped inflection point faster than nonstate-owned enterprises.(4)The mechanism of the two types of internationalization speed and innovation efficiency is different owing to regional distribution.The specific performance is that the depth-based speed of internationalization in the eastern region reaches the critical value of the U-shaped inflection point slower than that in noneastern regions;the breadth-based internationalization speed in the eastern region reaches the U-shaped inflection point threshold is faster than the non-eastern region.Based on the empirical evidence gathered through research,suggestions for policies are proposed for two different levels: the organizational level and the governmental level.These suggestions aim to offer practical guidance for the formulation and execution of internationalization strategies by Chinese manufacturing enterprises.