Can product specialization improve the internationalization level of enterprises? Empirical evidence from “SRDI” enterprises

Abstract

Cultivating “SRDI” (abbreviation for “Specialized,” “Refinement,” “Differential,” and “Innovation”) enterprises can help solve the current “bottleneck” problems faced by China, enhance the stability and competitiveness of the industrial chain and supply chain, and promote high-quality economic development. Using the “SRDI” enterprises listed in Shanghai and Shenzhen A-shares in 2011–2021 as samples, this paper empirically tests the effect of product specialization on the internationalization level of “SRDI” enterprises. The results show that the product specialization of “SRDI” enterprises can significantly improve their internationalization level. Heterogeneity analysis shows that under the conditions of executives with overseas experience, a low degree of financing constraint, and fierce competition in the product market, the product specialization of “SRDI” enterprises has a more significant effect on improving their internationalization level. Therefore, China's “SRDI” enterprises should focus on the core business, give full play to the advantages of specialized operation, actively promote the internationalization strategy, and attach importance to the internal training and external recruitment of overseas executives. Governments at all levels should improve the policy support system, strengthen the incentive mechanism of scientific and technological innovation, and alleviate the financing constraints of “SRDI” enterprises.