An Empirical Analysis of the Internationalization‐Performance Relationship Across Emerging Market Firms

Abstract

This study tests for the relationship between internationalization and performance in the emerging market context using a sample of 719 firms from 12 emerging markets. This study also incorporates the quality of governance in the emerging market studied to test for the interactive influence of the environmental context on the internationalization performance relationship. Findings indicate support for an inverted U‐shaped relationship between internationalization and performance for manufacturing firms and a positive linear relationship for service firms. In explaining the relationship between internationalization and performance, the quality of governance of the home country of the firm was found to interact with internationalization.

Citation

Elango, B. (2006), "An Empirical Analysis of the Internationalization‐Performance Relationship Across Emerging Market Firms", Multinational Business Review, Vol. 14 No. 1, pp. 21-44. https://doi.org/10.1108/1525383X200600002