Intra-Regional Sales and Performance

Abstract

This study examines the effect of a firm's level of intra-regional sales in the triad markets of North American, Europe, and Asia on its performance. The form of the relationship is explored. The results show that there exists a strong positive relationship between a firm's level of intra-regional sales and its performance (measured by return on equity (ROE) and return on assets, (ROA)). A firm tends to perform better when it has its sales in the home region of the triad. The hypothesis that there exists a non-linear relationship (second- and third-order curvilinear relationship) between performance and intra-regional sales is not supported.

Citation

Sukpanich, N. (2007), "Intra-Regional Sales and Performance", Rugman, A.M. (Ed.) Regional Aspects of Multinationality and Performance (Research in Global Strategic Management, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 317-336. https://doi.org/10.1016/S1064-4857(07)13013-8