An empirical examination of the form of the relationship between multinationality and performance

Lenn Gomes, Kannan Ramaswamy

Research output: Contribution to journalArticle

388 Scopus citations

Abstract

This paper reports findings from a study that systematically evaluated the form of the relationship between multinationality and performance. In contrast to most of the prior conceptualizations that rely on linear, monotonic models of the linkage, this study examined a curvilinear model that addresses both the costs and benefits associated with multinationality. It used time-series techniques to capture both the static and dynamic components of the relationship. Results show that increasing levels of multinationality bring significant performance benefits up to a certain optimum level beyond which benefits begin to decelerate, while costs accelerate.

Original languageEnglish (US)
Pages (from-to)173-187
Number of pages15
JournalJournal of International Business Studies
Volume30
Issue number1
DOIs
StatePublished - Mar 1999

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ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

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