The Effects of Internationalization Drivers on Strategy and Performance Relationships in Overseas Markets

Purpose - The purpose of this study is to examine the differences in overseas expansion strategies and performance for Chinese export companies according to internationalization drivers. Design/Methodology/Approach - This study conducted a questionnaire survey after deriving a research model and research hypothesis based on the research purpose presented above. We then conducted an empirical analysis based on the collected questionnaire. In the analysis process, the hypothesis was verified using multi-group analysis after verifying the reliability and validity of the measurement tool. Findings - To summarize the research results, first, it was found that companies with strong internationalization drivers have a stronger impact on management performance via global marketing strategies, strategic alliances, and levels of integration than companies with weak internationalization drivers. Second, in the case of incremental internationalization companies, companies with weak internationalization drivers had a stronger impact on management performance than companies with strong internationalization drivers. Research Implications - The implications of this study are that first, global marketing strategies have foreign costs in uncertain overseas markets, and this study found that these foreign costs can be supplemented through the combination of other strategies. In other words, this suggests that Chinese companies need to combine direct investment, such as cooperation with local partners or the establishment of overseas sales companies, in order to maximize the standardization strategy. Second, when the driving force for internationalization is weak, gradual internationalization is required. This is because the more negative the overseas market economy, the lower the risk probability through the continuous accumulation of experience.