Interdependence Relationship of Internationalization—Performance in Manufacturing Firms Listed in Indonesia Stock Exchange and Chinese Stock Exchanges

Abstract

The purpose of this paper is to investigate the interrelationship between performance and internationalization of Indonesian and Chinese manufacturing firms. This paper used a sample of 88 Indonesian firms and 989 Chinese firms from Indonesia stock exchange, Shanghai stock exchange, and Shenzhen stock exchange over the 2014 to 2018 period and applied the methods of panel least squares regression to examine the relationships. The results showed that the firm's internationalization degree has an inverted S-shaped relationship on a firm's performance in Indonesia firms and has a U-shaped relationship in Chinese firms. The firm's overseas expansion speed has an N-shaped relationship on a firm's performance both in Indonesia firms and Chinese firms. In turn, the firm's performance has S-shaped on firm's internationalization degree in Indonesia firms and has inverted U-shaped in Chinese firms. The firm's performance doesn't have a significant relationship on firm's internationalization overseas expansion speed in Indonesia firms and Chinese firms.

Analisis Dampak Penambahan Modal Negara dan Investasi Pemerintah Terhadap Kinerja Keuangan

“…Dengan demikian, efektivitas mengacu pada hubungan antara keluaran atau hasil yang dicapai atau yang benar-benar dicapai antara tujuan atau hasil yang ditetapkan atau diharapkan dalam rencana. Efektivitas adalah pemanfaatan sumber daya, sarana dan prasarana dalam jumlah tertentu yang secara sadar ditetapkan sebelumnya untuk menghasilkan sejumlah barang atas jasa kegiatan yang dijalankannya (Huang & Marciano, 2020). Dalam mengukur kefektifan, biasanya salah satunya digunakan pendekatan pencapaian tujuan dan perubahan yang dihasilkan (Gibson, Donnely, dan Ivancevich, 2014;Robins, 2018).…”

Interrelation of Internationalization and Firm Financial Performance in the Manufacturing Sector

“…Huang and Marciano [3] examined the same variables, namely internationalization and the performance of business entities in two countries, namely China and Indonesia. The populations of China and Indonesia are in the first and fourth places in the order of countries with the most populations; this implies that the consumer and labor markets are extensive.…”