As a member of the World Trade Organization, China has opened its economy. The economy enables Chinese firms to compete internationally. Compared with ones in developed countries, China’s cross-border investment is still at an infant stage in terms of investment volumes. As late-comers, Chinese firms typically lack intangible resources, such as advanced technologies, marketing techniques, established brands, and they have limited knowledge about potential host countries, compared with Western counterparts. Yet Chinese firms often take a large step in internationalization by investing in countries which differ institutionally from their home country and by seeking knowledge and institutional support to mitigate disadvantages of their late arrival. So based on a data of 323 firm-year of Chinese A-share listed companies from 2008 to 2015, this study empirically analyzes the relationship between home government support and internationalization performance and the moderating effect of internal resources of firm by knowledge-based view and resource-based view. The internal resources include marketing resource, technical resource, organizational slack, management resource.

Results show that, there are significant differences in the international performance of firms supported by the home government and those without government support. And the international performance of firms supported by the home government is significantly better than those without home government support. Furthermore, we show the moderating effect of internal resources of firm, such that marketing resource, technical resource and management resource strengthen positive relationship between home government support and internationalization performance, but organizational slack weakens positive relationship between home government support and internationalization performance.

The current study consists of five chapters as follows. Chapter 1 shows the background and the significance of this research. Chapter 2 presents a theoretical basis and hypotheses. Specifically, part 1 discusses the theoretical foundation of this study - knowledge-based view and resource-based view. Furthermore the concept of internationalization and the measurement of internationalization performance are examined and summarized, and the factors determining internationalization performance are described. Part 2 summarizes the Chinese government ''s support policies for corporate internationalization and supervision and management policies, and presents successful cases of Chinese firms'' entry into overseas markets. Part 3 presents hypotheses based on knowledge-based view and resource-based view. Chapter 3 is the analysis method of the paper. The general characteristics of the research sample and the operational definition of the independent variables, control variables, control variables, and dependent variables used for the extraction and analysis of the sample are described. Chapter 4 provides the results of the empirical analysis. Chapter 5 summarizes the results of this study, and also discusses the implications of the present study for Chinese firms and Chinese government.