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Internationalization Strategy and Firm Performance: Estimation of Corporate Strategy Effect Based on Big Data of Chinese IT Companies in a Complex Network

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  • Da HUO

    () (School of International Trade and Economics, Central University of Finance and Economics, No. 39, South College Road, Haidian District, Beijing, China, 100081.)

  • Ken HUNG

    () (A.R. Sanchez School of Business, Texas A&M International University, 5201 University Boulevard, Laredo, Texas, U.S. A, 78041)

Abstract

With the development of the Chinese IT industry, a number of Chinese IT companies have enhanced their involvement in the global market. The research of internationalization strategy, firm attributes, product attributes and firm performance in a complex network can be helpful to further reveal the effect of an internationalization strategy on firm performance. Dynamic cluster analysis is performed to analyze the relationship between internationalization strategy and firm performance based on big data concerning interactions with firm attributes and product attributes. The complex network of internationalization strategy, firm attributes, product attributes and firm performance is analyzed in a 2-mode network. The relationship of internationalization strategy and firm performance, concerning the effects of firm attributes, are further tested by a path model, and the effect of an internationalization strategy on firm performance is further estimated. This research finds that an internationalization strategy has a positive relationship with firm performance, and an indirect positive effect through financial leverage. Also, the integral function of internationalization strategy on firm performance in the complex network is generally on an ascending trend. This research can be helpful to policy makers and global managers of the Chinese IT companies in their future corporate decisions.

Suggested Citation

  • Da HUO & Ken HUNG, 2015. "Internationalization Strategy and Firm Performance: Estimation of Corporate Strategy Effect Based on Big Data of Chinese IT Companies in a Complex Network," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 148-163, June.
  • Handle: RePEc:rjr:romjef:v::y:2015:i:2:p:148-163
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    References listed on IDEAS

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    More about this item

    Keywords

    internationalization strategy; Chinese IT companies; big data; complex network;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications

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