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Internationalization Strategy and Firm Performance: A Complex Network of Chinese IT Companies
2014-05-18 19:05:41
by Huo Da, Central University of Finance and Economics

Wednesday, May 21 | 12:30pm - 2:00pm | Room 335, HSBC Business School Building


Abstract


With development of Chinese IT industry, a number of Chinese IT companies have enhanced their involvement in global competition. The effect of internationalization strategy on firm performance can be related to firm attributes and product attributes of Chinese IT companies. A research of complex network between firm strategy, firm attributes, product attributes and firm performance can be helpful to further reveal the effect of internationalization strategy on firm performance.


Based on corporate data of listed IT companies in 2011, this research analyzes the complex network of internationalization strategy and firm performance of Chinese IT companies, incorporating its interactions with firm attributes and product attributes. Dynamic cluster analysis is performed to identify different groups of Chinese IT companies based on quantitative and qualitative corporate data. The frequency of internationalization strategy, firm attributes, product attributes and firm performance is visualized by a cloud map. And a network analysis is performed to further reveal their interactions within this complex network. This research finds that Chinese IT companies, with a higher level of internationalization strategy, larger firm size, higher level of leverage and lower level of ownership concentration, have a higher level of firm performance. This research can be helpful to policy makers and global managers of Chinese IT companies in their future corporate decisions.