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The internationalization-performance relationship at Swiss firms: A test of the S-shape and extreme degrees of internationalization

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Abstract

Abstract and Key Results

  • Researchers have recently suggested that on average the relationship between internationalization and performance will be S-shaped. In this study, we test this pattern investigating 87 Swiss multinational companies in manufacturing industries over an 8-year period (1998–2005; N = 696).

  • Large Swiss companies cover the full range of internationalization, with many measuring over 90 percent foreign sales-to-total sales. This allows for a unique test of performance levels at very high degrees of internationalization.

  • We find that in the case of Swiss MNCs the S-curve is shifted to the right, and preceded by an initial stage of increasing performance.

  • We find that companies operating at extreme (very high) degrees of internationalization face lower average performance and higher average performance variation.

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Authors and Affiliations

  1. International Management and Director of the Research Institute for International Management, University of St. Gallen, St. Gallen, Switzerland

    Winfried Ruigrok

  2. Strategic Direction and International Business, Henley Management College, Henley-on-Thames, UK

    Wolfgang Amann

  3. Research Institute for International Management, University of St. Gallen, St. Gallen, Switzerland

    Hardy Wagner

Authors
  1. Winfried Ruigrok
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  2. Wolfgang Amann
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  3. Hardy Wagner
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Ruigrok, W., Amann, W. & Wagner, H. The internationalization-performance relationship at Swiss firms: A test of the S-shape and extreme degrees of internationalization. MANAGE. INT. REV. 47, 349–368 (2007). https://doi.org/10.1007/s11575-007-0020-6

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  • DOI: https://doi.org/10.1007/s11575-007-0020-6

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