The Impact of Dual Performance Feedback on Internationalization Speed of Firms

Abstract

Abstract: The existing researches mainly focus on the impact of performance feedback based on a single expected goal from the perspective of corporate behavior theory, neglecting the dual performance feedback effects based on historical and social expectations, as well as the self-serving motivation of managers. Based on the theory of corporate behavior and theself-serving motivation of managers, this paper infers that the dual performance feedback changes the speed of enterprise internationalization by influencing the motivation and intensity of their rapid internationalization. This paper conducts an empirical study with A-share manufacturing listed companies from 2009 to 2018 as research objects. The findings show that under the mutual influence of consistent historical and social performance feedback, the internationalization speed of enterprises accelerates. On the one hand, the dual negative feedback has led to an increase in the intensity of problem search among managers, viewing the rapid internationalization as a solution to problems, thereby forming a rapid internationalization motivation of“poverty leads to change” on the other hand, the dual positive feedback promotes the improvement of managers’ self-efficacy, viewing the rapid internationalization as a means to achieve sustained growth, thereby forming a rapid internationalization motivation of“being rich and more ambitious”. Under the interactive influence of inconsistent historical performance feedback and social performance feedback, the driving forces of“poverty leads to change”and“wealth leads to progress”both decrease in intensity, and the internationalization speed of enterprises slows down. Therefore, in international strategic decision-making, focusing on the reference role provided by the dual performance feedback and the interactive impact of manager problem search and self service can help enterprises to better cope with the risks and opportunities of internationalization.

Key words: dual performance feedback, internationalization speed of enterprises, corporate behavioral theory, self-serving

CLC Number:

F272.3

WU Jian-zu, JIN Ao. The Impact of Dual Performance Feedback on Internationalization Speed of Firms[J]. Contemporary Finance & Economics, 2023, 0(10): 97-108.

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