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What is the Shape of the Multinationality‐Performance Relationship?

Douglas E. Thomas (University of New Mexico)
Lorraine Eden (Texas A&M University)

Multinational Business Review

ISSN: 1525-383X

Article publication date: 11 March 2004

991

Abstract

Previous theoretical explanations and empirical analyses of the multinationality‐performance relationship have produced mixed arguments and results. Linear and inverted U‐shaped relationships have been theorized and confirmed empirically. Recent research has theorized that there is a three‐stage, sigmoid relationship between multinationality and performance. We contribute to the debate by showing that the impact of multinationality depends on the time dimension incorporated in the performance measure; that is, the net benefits from multinationality are likely to be higher in the longer term. The results from our sample of US manufacturing multinationals indicate that there is a three‐stage, sigmoid multinationality‐performance relationship.

Keywords

Citation

Thomas, D.E. and Eden, L. (2004), "What is the Shape of the Multinationality‐Performance Relationship?", Multinational Business Review, Vol. 12 No. 1, pp. 89-110. https://doi.org/10.1108/1525383X200400005

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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