The theoretical rationale for a multinationality-performance relationship

By Jean-françois Hennart. 2007

401 citations recorded by the source corpus.

Abstract and Key ResultsThis paper reviews the theoretical rationale that has been advanced so far for a positive relationship between multinationality (i.e. international diversification) and performance.We show that transaction cost/internalization theory implies no direct and general relationship between international diversification and performance.

Subfields: Communication, Political Science and International Relations, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/3b55c6d9bff45eedee374150c2b0a4ccc4ff1dc5

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Citations in the corpus

Export Market-Oriented Behavior and Export Performance: Quadratic and Moderating Effects under Differing Degrees of Market Dynamism and Internationalization (2009, background): “…adopts a greater degree of internationalization, the firm needs to learn about multiple new markets and maintain awareness and respond to changes occurring in those multiple markets (e.g., Contractor 2007; Hennart 2007; Kafouros et al. 2008; Liesch and Knight 1999; McDougall and Oviatt 1996).”
Firm-Specific Assets, Multinationality, and Financial Performance: A Meta-analytic Review and Theoretical Integration (2011, neutral): “Largely ignored has been reassessment of the theoretical foundation of this literature, as recently called for by Hennart (2007).”
Why is Family Firms’ Internationalization Unique? A Meta–Analysis (2017, background): “For instance, there is a consensus that the ratio of foreign sales to total sales (FS/TS), frequently used in studies, is not necessarily a good measure of firms’ degree of internationalization (e.g., Asmussen, 2009; Hennart, 2007, 2011; Hitt et al., 1997; Sanders & Carpenter, 1998; Sullivan).”
International attention and multinational enterprise performance (2008, result): “Taken together, these arguments are consistent with the assertion that there are general limits to executives’ informationprocessing abilities that can hurt MNE performance (Hennart, 2007).”
Liabilities of regional foreignness and the use of firm-level versus country-level data: a response to Dunning et al. (2007) (2007, methodology): “It has been used in hundreds of empirical studies, especially in those testing the (elusive) relationship between multinationality and performance (Geringer et al., 1989; Sullivan, 1994; Contractor et al., 2003; Lu and Beamish, 2004; Hennart, 2007 ).”
The regional and global competitiveness of multinational firms (2012, background): “In addition, these resources are almost exclusively developed at headquarters, and only a few foreign subsidiaries develop new resources (Doz et al. 2002; Hennart 2007).”
Added Psychic Distance Stimuli and MNE Performance: Performance Effects of Added Cultural, Governance, Geographic, and Economic Distance in MNEs' International Expansion (2014, neutral): “Though findings on the MP-relationship have been inconsistent (Cardinal et al., 2011; Verbeke et al., 2009), the general assumption in the literature is that MNEs benefit from higher levels of multinationality (Hennart, 2007, 2011).”
Resource determinants of strategy and performance: The case of British exporters (2012, background): “of internationalization and maximizes its performance (Contractor, 2007; Hennart, 2007).”