Intra-Regional Sales and the Internationalization and Performance Relationship

Abstract

This study provides a deeper insight into the performance effects of internationalization of the most international multinational enterprises (MNEs). Most MNEs perform their business activities within their home-regional block of the world – North America, Europe or the Asia-Pacific block. Whether these regional strategies pay off is explored by means of two analyses: first, the impact of internationalization in terms of the transnationality index, and second, the impact of foreign intra-regional sales on performance is examined. Results indicate that regional strategies smooth performance declines in the early stages of internationalization but also smooth performance increases during a phase of high-foreign expansion.

Citation

Richter, N. (2007), "Intra-Regional Sales and the Internationalization and Performance Relationship", Rugman, A.M. (Ed.) Regional Aspects of Multinationality and Performance (Research in Global Strategic Management, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 359-381. https://doi.org/10.1016/S1064-4857(07)13015-1