Abstract
The purpose of this study was to discuss the impact of the extent of internationalization on firm performance measured for firms with a high Tobin’s Q (firms with good operating performance), a median Tobin’s Q (firms with average operating performance), and a low Tobin’s Q (firms with poor operating performance). In addition to discussion on the impact of internationalization on firm performance, this study also discussed the impact of corporate proprietary assets (using assets, R&D, marketing, and management-related variables as moderating variables) and control variables (scale of company, debt-asset ratio, firm age, board structure, and proportion of pledged shares by directors) on firm performance. The research results showed that there is an S-shaped relationship between extent of internationalization and firm performance. However, further discussion found that there is an S-shaped relationship between extent of internationalization and performance for firms with a high Tobin’s Q but a slight decline in the middle of the S-shaped curve, as well as a general linear negative correlation between extent of internationalization and performance for firms with a median Tobin’s Q and an inverted U-shaped correlation between extent of internationalization and performance for firms with a low Tobin’s Q.
Highlights
Taiwan’s per capita GDP surpassed US$10,000 in 1992 to become a developed economy
Michael Geringer et al [1] advocated the degree of internationalization, Dess et al [2] used the degree of international polygonization, Delios and Beamish [3] and Dess et al [2] took the term of regional polygonization, and
Each method of measurement reflects the value of different degrees of overseas involvement [6], and appropriate indicators should be used to measure the international polygonization of different countries [7]
Summary
Taiwan’s per capita GDP surpassed US$10,000 in 1992 to become a developed economy. In 1993, Taiwan was rated as one of the top 20 economies in the world. erefore, this study selected data having been acquired since the 21st century. Profits will rise if management learns to properly manage such new complexity, which can be achieved constantly through learning [16] In such a case, firms can further mitigate the aforementioned performance decline as a result of excessive internationalization through increasing investments in proprietary corporate assets. In stage 2, with the increasing extent of internationalization, the accumulation of knowledge and experience regarding international operations, and the benefits of internationalization, a positive correlation between internationalization and performance is observed and performance improvement is recorded due to the increase and development of corporate resources, the internalization of transaction costs, the realization of economies of scale and scope, the extended lifetime of products, the acquisition of low-cost resources, and other factors. E second section is the Research Data and Research Method, which mainly introduces the research data and related variables of this article and the calculation of and the research methods used in this study. e third section is empirical analysis. e empirical results are carried out through relevant data and research methods. e last one is the Conclusions and recommendations of this research
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