nach oben

Management International Review

Erschienen in:

01.02.2012 | Research Article

Multinationality-Performance Relationship

A Meta-analysis

verfasst von: Dr. Yong Yang, Prof. Nigel Driffield

Erschienen in: Management International Review | Ausgabe 1/2012

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

We conduct a Meta-analysis of 54 papers that study the relationship between multinationality and firm performance. The aim is to understand if any systematic relationships exist between the characteristics of each study and the reported results of linear and curvilinear regressions to examine the multinationality-performance relationship.
Our main finding, robust to different specifications and to different weights for each observation, is that when analysis is based on non-US data, the reported return to multinationality is higher. However, this relationship for non-US firms is usually U-shaped rather than inverted U-shaped. This indicates that US firms face lower returns to internationalization than other firms but are less likely to incur losses in the early stages of internationalization.
The findings also highlight the differences that are reported when comparing regression and non-regression based techniques. Our results suggest that in this area regression based analysis is more reliable than say ANOVA or other related approaches.
Other characteristics that influence the estimated rate of return and its shape across different studies are: the measure of multinationality used; size distribution of the sample; and the use of market-based indicators to measure firm performance. Finally, we find no evidence of publication bias.

Vorheriger Artikel Organizing the Modern Firm in the Worldwide Market for Market Transactions

Nächster Artikel Forgiving Features for Failed Entrepreneurs vs. Cost of Financing inBankruptcies

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Management International Review

MANAGEMENT INTERNATIONAL REVIEW is a double-blind refereed journal that aims at the advancement and dissemination of research in the fields of International Management.

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

This ranking information is available in Harvey et al. (2008).

This reports the marginal effect of the outcome probability to be an inverted U-shape curve with respect to study characteristics .

It is important to emphasize that there are a group of studies used other dependent variables, such as innovation, patent and technical efficiency. However, in order to focus our analysis on comparable studies, we consider only those that use accounting/market-based performance.

As we found that financial crisis does not affect the return to multinationality in Table 5, we do not include this variable in Table 6.

AL-Obaidan, A. M., & Scully, G. W. (1995). The theory and measurement of the net benefits of multinationality: The case of the international petroleum industry. Applied Economics, 27(2), 231–238.CrossRef

Allen, L., & Pantzalis, C. (1996). Valuation of the operating flexibility of multinational corporations. Journal of International Business Studies, 27(4), 633–653.CrossRef

Andersen, J. T. (2005). The performance and risk management implication of multinationality: An industry perspective. SMG Working Paper 10.

Andersen, J. T. (2008). Multinational performance relationship and industry context. SMG Working Paper 15.

Ashenfelter, O., Harmon, C., & Oosterbeek, H. (1999). A review of estimates of the schooling/earnings relationship, with tests for publication bias. Labour Economics, 6(4), 453–470.CrossRef

Autio, E., Heikki, L., & Arenius, P. (2002). Emergent “Born Globals”: Crafting early and rapid internationalization strategies in technology-based new firms. Helsinki University of Technology Working Paper Series 91-WP-2002-003.

Bausch, A., & Krist, M. (2007). The effect of context-related moderators on the internationalization-performance relationship: Evidence from meta-analysis. Management International Review, 47(3), 319–347.CrossRef

Bodnar, G. M., Tang, C., & Weintrop, J. (1999). Both sides of corporate diversification: The value impacts of geographic and industrial diversification. NBER Working Paper 6224.

Brouthers, E. L., & Nakos, G (2005). The role of systematic international market selection on small firms’ export performance. Journal of Small Business Management, 43(4), 363–381.CrossRef

Buckley, P. J., & Casson, M. (1976). The future of the multinational enterprise. London: Macmillan.

Buhner, C. H. (1987). Assessing international diversification of West German corporations. Strategic Management Journal, 8(1), 25–37.CrossRef

Capar, N., & Kotabe, M. (2003). The relationship between international diversification and performance in service firms. Journal of International Business Studies, 34(4), 345–355.CrossRef

Card, D., & Krueger, A. B. (1995). Time-series minimum-wage studies: A meta analysis. American Economic Review, 85(2), 238–243.

Castellani, D., & Zanfei, A. (2007). Internationalisation, innovation and productivity: How do firms differ in Italy? The World Economy, 30(1), 156–176.CrossRef

Christophe, S. E., & Lee, H. (2004). What matters about internationalization: A market-based assessment. Journal of Business Research, 58(5), 636–643.CrossRef

Christophe, S. E., & Pfeiffer, J. R. (2002). The valuation of U.S. MNC international operations during the 1990s. Review of Quantitative Finance and Accounting, 18(2), 119–138.CrossRef

Click, R. W., & Harrison, P. (2000). Does multinationality matter? Evidence of value destruction in U.S. multinational corporations. Federal Reserve Board, Working Paper 21.

Collins, J. M. (1990). A market performance comparison of US firms active in domestic, developed and developing countries. Journal of International Business Studies, 21(2), 271–287.CrossRef

Contractor, F. J. (2007). Is international business good for companies? The evolutionary or multi-stage theory of internationalization vs. the transaction cost perspective. Management International Review, 47(3), 453–475.CrossRef

Contractor, F. J., Kundu, S. K., & Hsu, C. C. (2003). A three-stage theory of international expansion: The link between multinationality and performance in the service sector. Journal of International Business Studies, 34(1), 5–18.CrossRef

Dastidar, P. (2002). The effect of pure multinational diversification on firm value. AIB 2002 Annual Meeting Puerto Rico.

Delios, A., & Beamish, P. W. (1999). Geographic scope, product diversification, and the corporate performance of Japanese firms. Strategic Management Journal, 20(8), 711–727.CrossRef

Denis, D. J., Denis, D. K., & Yost, K. (2002). Global diversification, industrial diversification, and firm Value. The Journal of Finance, 57(5), 1951–1979.CrossRef

Doukas, J., Pantzalis, C., & Kim, S. (1999). Intangible assets and the network structure of MNCs. Journal of International Financial Management Accounting, 10(1), 1–35.CrossRef

Dunning, J. H. (1988). The theory of international production. International Trade Journal, 31(1), 21–46.CrossRef

Geringer, J. M., Beamish, P. W., & DaCosta, R. C. (1989). Diversification strategy and internationalization: Implications for MNE performance. Strategic Management Journal, 10(2), 109–119.CrossRef

Geringer, J. M., Tallman, S., & Olsen, D. M. (2000). Product and international diversification among Japanese multinational firms. Strategic Management Journal, 21(1), 51–80.CrossRef

Goerzen, A., & Beamish, P. W. (2003). Geographic scope and multinational enterprise performance. Strategic Management Journal, 24(13), 1289–1306.CrossRef

Gomes, L., & Ramaswamy, K. (1999). An empirical examination of the form of the relationship between multinationality and performance. Journal of International Business Studies, 30(1), 173–187.CrossRef

Görg, H., & Strobl, E. (2001). Multinational companies and productivity spillovers: A meta-analysis. Economic Journal, 111(475), F723–739.CrossRef

Grant, R. M. (1987). Multinationality and performance among British manufacturing companies. Journal of International Business Studies, 18(3), 79–89.CrossRef

Grant, R. M., Jammine, A. P., & Thomas, H. (1988). Diversity, diversification, and profitability among British manufacturing companies. Academy of Management Journal, 31(4), 771–801.CrossRef

Harvey, C., Morris, H., & Kelley, A. (2008). Academic Journal Quality Guide. http://www.the-abs.org.uk.

Helpman, E., Melitz, M. J., & Yeaple, S. R. (2004). Export versus FDI with heterogeneous firms. American Economic Review, 94(1), 300–316.CrossRef

Hitt, M. A., Hoskisson, R. E., & Kim, H. (1997). International diversification: Effects on innovation and firm performance in product-diversified firms. The Academy of Management Journal, 40(4), 767–798.CrossRef

Hitt, M. A., Uhlenbruck, K., & Shimizu, K. (2006). The importance of resources in the internationalization of professional service firms: The good, the bad, and the ugly. The Academy of Management Journal, 49(6), 1137–1157.CrossRef

Hunter, J. E., & Schmidt, F. L (1990). Methods of meta-analysis: Correcting error and bias in research findings. Newbury Park: Sage.

Hunter, J. E., Schmidt, F. L., & Jackson, G. B. (1982). Meta-analysis: Cumulating research findings across studies. Beverly Hills: Sage.

Hughes, J. S., Logue, D. E., & Sweeney, R. J. (1975). Corporate international diversification and market assigned measures of risk and diversification. Journal of Financial and Quantitative Analysis, 10(4), 651–652.CrossRef

Kim, W. J., & Lyn, E. D. (1986). Excess market value, the multinational corporation and Tobin’s q Ratio. Journal of International Business Studies, 17(1), 119–125.CrossRef

Kim, W., Hwang, P., & Burgers, W. P. (1993). Multinationals’ diversification and the risk-return trade-off. Strategic Management Journal, 14(4), 275–286.CrossRef

Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141.CrossRef

Kostova, T., & Zaheer, S. (1999). Organizational legitimacy under conditions of complexity: The case of the multinational enterprises. Academy of Management Review, 24(1), 64–81.

Kotabe, M., Srinivasan, S. S., & Aulakh, P. S. (2002). Multinationality and firm performance: The moderating role of RD and marketing capabilities. Journal of International Business Studies, 33(1), 79–97.CrossRef

Laeven, L., & Valencia, F. (2008). Systemic banking crises: A new database. http://www.imf.org/external/pubs/cat/longres.cfm?sk=22345.

Li, L. (2005). Is regional strategy more effective than global strategy in the US service industries? Management International Review, 45(1), 37–57.

Li, L. (2007). Multinationality and performance: A synthetic review and research agenda. International Journal of Management Reviews, 9(2), 117–139.CrossRef

Li, L., & Qian, G. (2005). Dimensions of international diversification: The joint effects on firm performance. Journal of Global Marketing, 18(3/4), 7–35.CrossRef

Lu, J. W., & Beamish, P. W. (2001). The internationalization and performance of SMEs. Strategic Management Journal, 22(6/7), 565–586.CrossRef

Lu, J. W., & Beamish, P. W. (2004). International diversification and firm performance: The s-curve Hypothesis. The Academy of Management Journal, 47(4), 598–609.CrossRef

Martins, P. S., & Yang, Y. (2009). The impact of exporting on firm productivity: A meta-analysis. Review of World Economy, 145(3), 431–445.CrossRef

Michel, A., & Shaked, I. (1986). Multinational corporations vs. domestic corporations: Financial performance and characteristics. Journal of International Business Studies, 17(3), 89–100.CrossRef

Mishra, C. S., & Gobeli, D. H. (1998). Managerial incentives, internalization, and market valuation of multinational firms. Journal of International Business Studies, 29(3), 583–598.CrossRef

Morck, R., & Yeung, B. (1991). Why investors value multinationality. Journal of Business, 64(2), 165–187.CrossRef

Moen, O., & Servais, P. (2002). Born global or gradual global? Examining the export behavior of small and medium-sized enterprises. Journal of International Marketing, 10(3), 49–72.CrossRef

Pangarkar, N. (2008). Internationalization and performance of small- and medium-sized enterprises. Journal of World Business, 43(4), 475–485.CrossRef

Pantzalis, C. (2001). Does location matter? An empirical analysis of geographic scope and MNC market valuation. Journal of International Business Studies, 32(1), 133–155.CrossRef

Pereira, P. T., & Martins, P. S. (2004). Returns to education and wage equations. Applied Economics, 36(6), 525–531.CrossRef

Qian, G. (1997). Assessing product-market diversification of U.S. firms. Management International Review, 37(2), 127–149.

Qian, G. (1998). Determinants of profit performance for the largest U.S. firms 1981–92. Multinational Business Review, 6(2), 44–51.

Qian, G. (2002). Multinationality, product diversification, and profitability of US emerging and medium-sized enterprises. Journal of Business Venturing, 17(6), 611–633.CrossRef

Qian, G. M., Li, L., Li, J., & Qian, Z. M. (2008). Regional diversification and firm performance. Journal of International Business Studies, 39(2), 197–214.CrossRef

Ramírez-Aleson, M., & Espitia-Escuer, M. A. (2001). The effect of international diversification strategy on the performance of Spanish-based firms during the period 1991–1995. Management International Review, 41(3), 291–315.

Rugman, A. M. (1986). New theories of the multinational enterprise: An assessment of internalization Theory. Bulletin of Economic Research, 38(2), 101–118.CrossRef

Ruigrok, W., & Wagner, H. (2003). Internationalization and performance: An organizational learning perspective. Management International Review, 43(1), 63–84.

Ruigrok, W., Amann, W., & Wagner, H. (2007). The internationalization-performance relationship at Swiss firms: A test of the s-shape and extreme degree of internationalization. Management International Review, 47(3), 349–368.CrossRef

Sambharya, R. B. (1995). The combined effect of international diversification and product diversification strategies on the performance of US-based multinational corporations. Management International Review, 35(3), 197–213.

Severn, A. K., & Laurence, M. M. (1974). Direct investment, research intensity, and profitability. Journal of Financial and Quantitative Analysis, 9(2), 181–190.CrossRef

Shaked, I. (1986). Are multinational corporations safer? Journal of International Business Studies, 17(1), 83–106.CrossRef

Siddharthan, N. S., & Lall, S. (1982). The recent growth of the largest U.S. multinationals. Oxford Bulletin of Economics and Statistics, 4(1), 1–13.

Soenen, L. A. (1990). Stock market recognition of multinationality. Akron Business and Economic Review, 21(4), 64–73.

Stanley, T., & Jarrell, S. B. (1989). Meta-regression analysis: A quantitative method of literature surveys. Journal of Economic Surveys, 3(2), 161–170.CrossRef

Tallman, S., & Li, J. (1996). Effects of international diversity and product diversity on the performance of multinational firms. Academy of Management Journal, 39(1), 179–196.CrossRef

Thomas, D. E., & Eden, L. (2004). What is the shape of the multinationality-performance relationship? The Multinational Business Review, 12(1), 89–110.CrossRef

Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38(2), 341–363.CrossRef

Zahra, S. A., Ireland, R. D., & Hitt, M. A. (2000). International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43(5), 925–950.CrossRef

Titel: Multinationality-Performance Relationship
A Meta-analysis
verfasst von: Dr. Yong Yang
Prof. Nigel Driffield
Publikationsdatum: 01.02.2012
Verlag: SP Gabler Verlag
Erschienen in: Management International Review / Ausgabe 1/2012
Print ISSN: 0938-8249
Elektronische ISSN: 1861-8901
DOI: https://doi.org/10.1007/s11575-011-0095-y

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Management International Review

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 1/2012

Biblio Service

Adoption of Practices by Subsidiaries and Institutional Interaction within Internationalised Small- and Medium-Sized Enterprises

Why Do Firms Engage in National Sustainability Programs and Transparent Sustainability Reporting?

Forgiving Features for Failed Entrepreneurs vs. Cost of Financing inBankruptcies

Acknowledgment to MIR Board Members and Ad-hoc Reviewers

Organizing the Modern Firm in the Worldwide Market for Market Transactions

Premium Partner