Search results
1 – 8 of 8Ohad Ref and Itzhak Gnizy
The relationship between multinationality and firm performance is a central issue in the international marketing and business literatures. Predominantly, this body of research has…
Abstract
Purpose
The relationship between multinationality and firm performance is a central issue in the international marketing and business literatures. Predominantly, this body of research has tried to identify a single, generalized pattern for this relationship. However, despite the vast number of studies, results have been characterized as mixed or inconsistent. In this study, we take a fresh look at this relationship.
Design/methodology/approach
We focus on a key inducement to expand firm multinationality – the search for a more efficient way to exploit firm resources, and also on a specific operationalization of multinationality – firm geographic scope. We use a formal analytical model analyzing the trade-off between benefits and costs arising from expanding firm geographic scope and emphasizing the role of lumpy costs emanating from resource indivisibility.
Findings
The relationship between geographic scope and performance cannot be confined to a single pattern, but instead, may have any one of a set of patterns: negatively monotonic shape, inverted U-shape, S-shape, M-shape or, multiple-wave inverted U-shape.
Practical implications
The current study offers managers some guidelines to identify which of the above patterns fits their firm's specific case, and to identify the optimal level of geographic scope for their firm.
Originality/value
We conclude that the search for a single, generalized pattern for multinationality-performance is largely futile, whereas the focus on specific inducements and operationalizations for multinationality allows us to explain when and why specific patterns are more likely to occur.
Details
Keywords
Chin‐Chun Hsu and David J. Boggs
Previous empirical results on the relationship between internationalization and firm performance have been mixed. Both monotonic and curvilinear relationships have been reported…
Abstract
Previous empirical results on the relationship between internationalization and firm performance have been mixed. Both monotonic and curvilinear relationships have been reported. Most recent studies have focused on different types of curvilinear relationships, such as inverted Ushaped, standard U‐shaped, and multiple waves. This paper utilizes a more current sample of firms than prior studies have used and decomposes traditional financial performance measures, applying two different measures of degree of internationalization, country scope and foreign sales as a percent of total sales (FSTS), to measure the effects on financial performance of different degrees of internationalization. Several financial performance measures, including traditional indexes (ROE and ROA) and a decomposition of traditional ones (Profit Margin, Total Asset Turnover), are examined.
Details
Keywords
This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies…
Abstract
This chapter develops a multi-path theory of diversified international expansion that explains how multiple wave-shaped performance curves are created as multinational companies expand into increasingly distant and dissimilar countries. According to this theory, multinational mobile network operators (MNOs) recover from over-diversified expansion by improving their local adaptation strategies by means of reconfiguring the value chain and entering local partnerships, by improving their global replication capabilities or by concentrating expansion to clusters of similar country markets. Three dynamic propositions are developed and exemplified concerning MNOs’ diversified international expansion. Implications for international diversification research finalize the chapter.
Details
Keywords
Douglas E. Thomas and Lorraine Eden
Previous theoretical explanations and empirical analyses of the multinationality‐performance relationship have produced mixed arguments and results. Linear and inverted U‐shaped…
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.
Details
Keywords
This study provides a deeper insight into the performance effects of internationalization of the most international multinational enterprises (MNEs). Most MNEs perform their…
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.
Shi Xu and Larry Martinez
This paper aims to introduce latent growth curve modeling (LGCM) as a statistical technique to analyze repeated measures of longitudinal data to researchers in hospitality…
Abstract
Purpose
This paper aims to introduce latent growth curve modeling (LGCM) as a statistical technique to analyze repeated measures of longitudinal data to researchers in hospitality management.
Design/methodology/approach
First, the basics and extensions of LGCM are explained. Second, this paper reviews three existing empirical hospitality research studies that could have benefitted from LGCM but did not use this methodology. Third, this paper provides an overview of two specific illustrative examples of how the current authors have already used LGCM for hospitality research.
Findings
Based on explaining the basics of LGCM, delineating two examples using LGCM method and presenting new research avenues that would use LGCM to advance theoretical knowledge, this paper shows how LGCM represents a leap forward in the promotion of more rigorous research in hospitality management.
Originality/value
This paper is the first in hospitality to call for research based on LGCM and provide hands-on demonstrations and an agenda for this methodology.
Details
Keywords
This study uses data from 255 global pharmaceutical/biotechnological companies to (1) determine the impact of internationalization on firm performance and (2) explore the…
Abstract
This study uses data from 255 global pharmaceutical/biotechnological companies to (1) determine the impact of internationalization on firm performance and (2) explore the moderating effect that product diversity has on the relationship between internationalization and company performance. The results highlight the rewards of pursuing internationalization and demonstrate that companies benefit from internationalization activities by achieving higher overall performance. This finding contrasts with recent empirical evidence that an S‐curve relationship exists. Analysis of the moderating effect of product diversity indicates a strong effect on the internationalization‐performance relationship and thus shows that the payoff from internationalization is moderated by product diversity
Details
Keywords
Aristides I. Ferreira, Timo Braun, Helena Carvalho, António C.M. Abrantes and Jörg Sydow
Many start-ups do not survive the first few years of business. Previous studies suggest that networks play a role in start-ups' success, but this positive effect has limits. The…
Abstract
Purpose
Many start-ups do not survive the first few years of business. Previous studies suggest that networks play a role in start-ups' success, but this positive effect has limits. The purpose of this paper is to answer the call for a better understanding of the dark side of networks and the variables that condition variables' effect on the likelihood of start-ups' survival.
Design/methodology/approach
A longitudinal research design includes 139 start-ups (102 from Germany and 37 from Portugal) and a total of 252 participants. A generalized linear mixed model (GLMM)was applied to estimate all the coefficients, to test the mediation (H1), the moderation (H2) and the moderated mediation (H3) while considering the economic situation of the start-up (sales growth), start-ups' networking behavior, creativity orientation and ultimately the likelihood of survival.
Findings
Based on an empirical study from two different countries, the results show that effective networking is contingent on the start-up's economic situation and creative potential. Specifically, the results point to situations in which early sales growth may lead to external networking, which, in contexts of low creativity-oriented start-ups, can compromise the start-ups' success.
Originality/value
Based on the findings, the authors compare scenarios in which networking increases the chances for start-up survival with situations where networking can have adverse effects. This study highlights the importance of considering specific start-up parameters, such as start-ups' economic situation and level of creativity orientation, in the business venturing literature.
Details