Mental Capital and the Internationalization of Chinese IP-Sensitive Enterprises: The Impact of WTO Intellectual Property Protection Policies on Entrepreneurial Performance

Abstract

This study examines the impact of WTO Intellectual Property Protection Policies, particularly patents and trademarks, on the internationalization performance of Chinese enterprises in IP-sensitive industries, with a focus on mental capital. Mental capital, a critical intangible asset comprising knowledge, flexibility, and cultural sensitivity, is explored as a key enabler for firms to navigate WTO frameworks and adapt to global markets. IP-sensitive industries, such as electronics, pharmaceuticals, and telecommunications, were chosen for their reliance on intellectual property. Data was collected through a mixed-methods approach, including a structured survey of 250 participants from senior and middle management levels in these industries and in-depth interviews with five business leaders selected based on their international market experience. Quantitative findings reveal that Patent Protection and Trademark Protection significantly influence entrepreneurial performance, collectively explaining 76.3% of the variance. Qualitative data highlights the role of mental capital in strategic decision-making, risk management, and cultural adaptability, enabling Chinese enterprises to respond effectively to global challenges. Grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the study demonstrates how intellectual property protections and mental capital function as critical global competitive assets. RBV underscores the importance of firm-specific resources, while DCT highlights the dynamic adaptability required to thrive in rapidly evolving markets. This research offers actionable recommendations to enhance R&D investment, develop mental capital through training and leadership programs, and strengthen national IP systems to support the globalization of Chinese enterprises.