Triple-testing the quality of multinationality-performance research: An internalization theory perspective
The international business literature has suggested various linkages between multinationality (M) and performance (P). A number of authors have recently put forward an S-shaped curve, allegedly describing a generalized MP relationship. However, internalization theory, in line with Buckley and Casson (Buckley, P.J., & Casson M. (1976). The future of the multinational enterprise. Macmillan: London) and Hennart (Hennart, J. F. (1982). A theory of multinational enterprise. Ann Arbor, University of Michigan Press; Hennart, J. F. (2007). The theoretical rationale for a multinationality-performance relationship, Management International Review, 47(3), 423-452), challenges the concept itself of such a generalized relationship between these two parameters. This paper adopts an internalization theory perspective, meant to improve the design of MP studies, and cautions against assuming too quickly a generalized MP relationship. In line with internalization theory, we argue that firm-level performance depends primarily on the characteristics of the companies' firm specific advantages (FSAs) rather than on their degree of multinationality. We propose triple-testing the quality of MP studies, by assessing how well they address the various challenges related to conceptualizing and measuring M, P and the MP relationship itself.
Year of publication: |
2009
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Authors: | Verbeke, Alain ; Brugman, Paul |
Published in: |
International Business Review. - Elsevier, ISSN 0969-5931. - Vol. 18.2009, 3, p. 265-275
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Publisher: |
Elsevier |
Keywords: | Firm-specific advantage Internalization MP relationship Multinationality Performance S-curve |
Saved in:
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