Management International Review

An Exploration of the Relationship Between Country of Origin (Coe) and the Internationalization-Performance Paradigm

The relationship of internationalization with firm performance continues to be a major focus of corporate strategy. While internationalization raises important issues of risk and uncertainty, cross-cultural aspects of employee conduct and consumer behavior, market structure and competition, and political and regulatory dimensions, it also provides new opportunities for growth, profitability and organizational learning. This study seeks to contribute to the topic by empirically investigating t...

The Internationalization-Performance Relationship at Swiss Firms: A Test of the S-Shape and Extreme Degrees of Internationalization

Researchers have recently suggested that on average the relationship between internationalization and performance will be S-shaped. In this study, the researchers test this pattern investigating 87 Swiss multinational companies in manufacturing industries over an 8-year period. Large Swiss companies cover the full range of internationalization, with many measuring over 90% foreign sales-to-total sales. This allows for a unique test of performance levels at very high degrees of internationaliz...

Is International Business Good for Companies? The Evolutionary or Multi-Stage Theory of Internationalization Vs. The Transaction Cost Perspective

This paper's objective is to articulate, more precisely than has occurred in the past, the principal theory rationales underlying the Multinationality/Performance (M/P) link, by examining each claim for the negative or positive benefits of internationalization, from the lens of the theory of the firm and the multinational enterprise. A concurrent objective of this paper is to respond to critiques of MIP theory and discuss methodology and operationalization problems in empirical testing. While...

The Theoretical Rationale for a Multinationality-Performance Relationship

This paper reviews the theoretical rationale that has been advanced so far for a positive relationship between multinationality (ie international diversification) and performance. The researchers show that transaction cost/internalization theory implies no direct and general relationship between international diversification and performance. For example, it is quite possible that the assumptions made by TCI theories that an MNE's level of international diversification cannot remain suboptimal...

Stock Market Reaction to Foreign Direct Investments: Interaction Between Entry Mode and Fdi Attributes

What is the expected reaction regarding the stock price of companies which carry out Foreign Direct Investments (FDIs)? Results from previous research focusing on specific entry modes are inconclusive. The aim of this paper is to test whether the stock market reaction to FDIs is dependent not only on the entry mode that the investing firm may have chosen, but also on the interaction between the entry mode and the other FDIs' attributes. By focusing on the recent international expansion by mea...

The Effect of Context-Related Moderators On the Internationalization-Performance Relationship: Evidence From Meta-Analysis

After thirty years of research on the relationship between internationalization and firm performance, findings on direction and magnitude are still contradictory. This paper quantitatively reviews prior research in an attempt to reconcile the fragmented results. The researchers address the question if and how internationalization relates to firm performance by integrating findings from 36 studies using the method of meta-analysis. They find empirical support for a significant positive relatio...

40 Years of Research On Internationalization and Firm Performance: More Questions Than Answers?