Relationship between innovation and internationalization in Chinese companies

Abstract

The purpose of this research is to analyze the relationship between innovation and internationalization in Chinese companies. 486 companies from China were surveyed to determine which types of innovation within Chinese companies are positively related to Chinese companies' internationalization. It is proved that both product and process innovation enhance Chinese companies' internationalization. What is more, all four types, product, process, marketing and organizational innovation are proved to be positively influenced by internationalization. In addition to this, results from this research also indicate that internationalization subsequently improves position of Chinese company on the local, Chinese market.