| Summary: | 碩士 === 國立中興大學 === 企業管理學系所 === 95 === Being a small-island economy and lacking abundant resources, Taiwan has paid close attention to internationalization. Compare with western MNCs Taiwanese small medium-sized enterprises (SMEs) lack international experiences, so the capacity to invest abroad directly may be limited. Due to these reasons, internationalization may bring the profit for Taiwanese businesses?
Subject to internal environment of parent company and external environment of the host country, MNCs may encounter a lot of challenges in the process of international expansion. Previous empirical studies reveal that the relationships between internationalization and performance were inconsistent. The main reason may be that this relationship is interfered with many factors, especially the host country’s political and economic environment. However, not too many studies catch the importance of the political activities in the process of internationalization. Hence, this research combines political activities (i.e., the firm’s bribery and the host country corruption) and the environment in the host country (i.e., the level of the host country development) to investigate how internationalization improve MNCs’ performance.
This study focuses on the relationships between internationalization extent and MNCs’ performance (parent company’s performance, innovation performance and subsidiary’s performance), and also explores the role of moderators in terms of firm’s bribery, host country corruption, and the level of the host country development. Empirical samples were taken from 2004 database of Department of Statistics, Ministry of Economic Affairs. They are 1,155 MNCs and 1,112 subsidiarys.
Using hierarchical multiple regression method and ordinal logit for hypothesis testing, the findings show that: 1) internationalization has an U-shape effect on parent company’s financial performance, an inverse U-shape effect on subsidiary’s financial performance, and parent company’s innovation performance. 2) the host country corruption negatively influence parent country’s financial performance. 3) the level of the host country development has positive effect on parent country’s financial and innovation performance. 4) the parent country bribery has a positive effect on parent country innovation performance. 5) when the host country corruption is enhanced, it increases the effect of internationalization on subsidiary’s financial performance. 6) when the level of the host country development is enhanced, it decreases the effect of internationalization on subsidiary’s financial performance.
This study also found that both the host country’s corruption and bribery were also important factors that disrupt social stability. This research points out another view of political activities and use political activities relevant behaviors to make up the gap of resource-based theory and expand the contents of firm’s resources.
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