Internationalization and Firm Performance (eBook, PDF)
The Role of Intangible Resources
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After thirty years of research on the relationship between internationalization and firm performance, findings on its direction and magnitude are still contradictory. Mario Krist explores if, how, and why internationalization and performance are related to each other and explicitly considers the role of intangible resources in this context. Based on the method of meta-analysis, he reveals a positive relationship at the aggregate level which is moderated by contextual factors. Having found that a sigmoid curve type pattern best explains the relationship for a sample of German multinational firm...
After thirty years of research on the relationship between internationalization and firm performance, findings on its direction and magnitude are still contradictory. Mario Krist explores if, how, and why internationalization and performance are related to each other and explicitly considers the role of intangible resources in this context. Based on the method of meta-analysis, he reveals a positive relationship at the aggregate level which is moderated by contextual factors. Having found that a sigmoid curve type pattern best explains the relationship for a sample of German multinational firms, the author explores the moderating role of five different intangible resources. He suggests that the successful international deployment of intangible resources depends on whether the value of a resource is location bound or not. Furthermore, firm performance is not only influenced by the degree of internationalization but also by the way how it is implemented. Finally, he demonstrates that a slow and modest pace of international expansion has a positive impact on performance, whereas this effect can eventually turn negative for firms progressing too quickly.
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