Nature of the relationship between international expansion and performance: The case of emerging market firms

Journal of World Business

Volumn 42, Issue 4, 2007, Pages 401-417

  Contractor, Farok J ^a   Kumar, Vikas ^b   Kundu, Sumit K ^c  

^a RUTGERS UNIVERSITY   (United States)

^b BOCCONI UNIVERSITY   (Italy)

^c FLORIDA INTERNATIONAL UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 35548988845     PISSN: 10909516     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jwb.2007.06.003     Document Type: Article

References (119)

1. Agmon T., and Lessard D.R. Investor recognition of corporate international diversification. Journal of Finance 32 (1977) 1049-1055
2. Aldrich H., and Auster E.R. Even dwarfs started small: Liabilities of age and size and their strategic implications. Research in Organizational Behavior 8 (1986) 165-198
3. Anderson E., and Gatignon H. Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies 17 (1986) 1-26
4. Annavarjula M., and Beldona S. Multinationality-performance relationship: A review and reconceptualization. International Journal of Organizational Analysis 8 1 (2000) 48-67
5. Autio E., Sapienza H.J., and Almeida J.G. Effects of time to internationalization, knowledge intensity, and imitability on growth. Academy of Management Journal 43 (2000) 909-924
6. Banga R. The export-diversifying impact of Japanese and US foreign direct investments in the Indian manufacturing sector. Journal of International Business Studies 37 4 (2006) 558-568
7. Bartlett C., and Ghoshal S. Managing across borders: The transnational solution (1989), Harvard University Press, Boston, MA
8. Baum J.A.C., Calabrese T., and Silverman B.S. Don't go it alone: Alliance network composition and startups' performance in Canadian Biotechnology. Strategic Management Journal 21 (2000) 267-294
9. Begley T.M., and Boyd D.P. Executive and corporate correlates of financial performance in smaller firms. Journal of Small Business Management 26 2 (1988) 8-15
10. Birley S., and Westhead P. Growth and performance contrasts between 'types' of small firms. Strategic Management Journal 11 (1990) 535-557
11. Bloodgood J.M., Sapienza H.J., and Almeida J.G. The internationalization of new high-potential U.S. ventures: Antecedents and outcomes. Entrepreneurship Theory and Practice 20 4 (1996) 61-76
12. Boecker W., and Goodstein J. Organizational performance and adaptation: Effects of environment and performance on changes in board composition. Academy of Management Journal 34 4 (1991) 805-826
13. Bodewyn J.J., Halbrich M.B., and Perry A.C. Service multinationals: Conceptualization, measurement and theory. Journal of International Business Studies 17 3 (1986) 41-58
14. Bracker J.S., and Pearson J.N. Planning and financial performance of small, mature firms. Strategic Management Journal 7 (1986) 503-522
15. Braga C. The impact of the internationalization of services on developing countries. Finance and Development March (1996) 34-37
16. Brush C.G. International entrepreneurship: The effect of firm age on motives for internationalization. In: Bruchey S. (Ed). Garland studies in entrepreneurship (1995), Garland Publishing, New York, NY
17. Buckley P.J., and Casson M.C. The future of the multinational enterprise (1976), Homes & Meier, London
18. Buckley P.J., Dunning J.H., and Pearce R.B. The influence of firm size, industry, nationality, and degree of multinationality in the growth and profitability of worlds largest firms. Weltwirtschaftliches Archives 114 (1977) 243-257
19. Buckley P.J., Dunning J.H., and Pearce R.B. An analysis of the growth and profitability of the worlds largest firms 1972 to 1977. Kyklos 37 (1984) 3-26
20. Buckley P.J. The limits of explanation: Testing the internalization theory. Journal of International Business Studies 19 2 (1988) 181-194
21. Buhner R. Assessing international diversification of West German corporations. Strategic Management Journal 8 (1987) 25-37
22. Campbell A.J., and Verbeke A. The globalization of service multinational. Long Range Planning 27 2 (1994) 95-102
23. Capar N., and Kotabe M. The relationship between international diversification and performance in service firms. Journal of International Business Studies 34 (2003) 327-344
24. Carroll G.R. A stochastic model of organizational mortality: Review and reanalysis. Social Science Research 12 (1983) 303-329
25. Caves R. International corporations: Industrial economics of foreign investment. Economica 38 (1971) 1-27
26. Caves R. Multinational enterprise and economic analysis. 2nd ed. (1996), Harvard University Press, Cambridge, MA
27. Central Intelligence Agency (CIA). (2007). World factbook. http://www.cia.gov/cia/publications/factbook/rankorder/2001rank.html.
28. Contractor F. Is international business good for companies? The evolutionary or multi-stage theory of internationalization vs. the transaction cost perspective. Management International Review 47 (2007) 453-475
29. Contractor F., and Kundu S. The role of export-driven entrepreneurship in economic development: A comparison of software exports from India, China, and Taiwan. Economic Forecasting and Social Change 8 (2004) 799-822
30. Contractor F.J., Kundu S.K., and Hsu C.C. A three-stage theory of international expansion: The link between multinationality and performance in the service sector. Journal of International Business Studies 34 1 (2003) 5-19
31. Contractor F. Strategies for international expansion. In: Warner M. (Ed). International encyclopedia of business and management. 2nd ed. Vol. 7 (2002), Thomson Learning, London
32. Collins M.J. A market performance comparison of US firms active in domestic, developed, and developing countries. Journal of International Business Studies 21 (1990) 271-287
33. Coviello N.E., and McAuley A. Internationalization and the smaller firm: A review of contemporary empirical research. Management International Review 39 (1999) 223-256
34. Daniels J.D., and Bracker J. Profit performance: Do foreign operations make a difference?. Management International Review 29 1 (1989) 46-56
35. Delios A., and Beamish P.W. Geographic scope, product diversification and the corporate performance of Japanese firms. Strategic Management Journal 20 (1999) 711-727
36. Doz Y., Santos J., and Williamson P.J. From global to metanational: How companies win in the knowledge economy (2001), Harvard Business School Press Books, Cambridge, MA
37. Dunning J.H. Multinational enterprises and the global economy (1993), Addison Wesley, Wokingham, England
38. Douma S., George R., and Kabir R. Foreign and domestic ownership, business groups, and firm performance: Evidence from a large emerging market. Strategic Management Journal 27 (2006) 637-657
39. Freeman J., Carroll G.R., and Hannan M.T. The liability of newness: Age dependence in organizational death rates. American Sociological Review 48 (1983) 692-710
40. Geringer J.M., Beamish P.W., and DaCosta R.C. Diversification strategy and internationalization: Implications for MNE performance. Strategic Management Journal 10 2 (1989) 109-119
41. Ghoshal S., and Bartlett C. The multinational corporation as an interorganizational network. Academy of Management Review 15 (1990) 603-625
42. Gomes L., and Ramaswamy K. An empirical examination of the form of the relationship between multinationality and performance. Journal of International Business Studies 30 1 (1999) 173-188
43. Grant R.M. Multinationality and performance among British manufacturing companies. Journal of International Business Studies 18 1 (1987) 79-89
44. Grant R.M., Jammine A.P., and Thomas H. Diversity, diversification and profitability among British manufacturing companies1972-1984. Academy of Management Journal 31 (1988) 771-801
45. Haar J. Comparative analysis of the profitability performance of the largest US, European and Japanese Multinational enterprises. Management International Review 29 3 (1989) 5-18
46. Habib M.M., and Victor B. Strategy, structure, and performance of US manufacturing and service MNCs: A comparative analysis. Strategic Management Journal 12 8 (1991) 589-606
47. Han K.C., Lee S.H., and Suk D.Y. Multinationality and firm performance. Multinational Business Review 6 2 (1998) 63-70
48. Hannan M.T., and Freeman J. Structural inertia and organizational change. American Journal of Sociology 49 (1984) 149-164
49. Hennart J.F. Theories of the multinational enterprise. In: Rugman A.M., and Brewer T.L. (Eds). The Oxford handbook of international business (2001), Oxford University Press, Oxford, UK 127-149
50. Hill C.W., and Phan P. CEO tenure as a determinant of CEO pay. Academy of Management Journal 34 3 (1991) 707-717
51. Hitt M.A., Hoskisson R.E., and Kim H. International diversification: Effects on innovation and firm performance in product diversified firms. Academy of Management Journal 40 4 (1997) 767-798
52. Hitt M.A., Bierman L., Uhlenbruck K., and Shimizu K. The importance of resources in the internationalization of professional service firms: The good, the bad, and the ugly. Academy of Management Journal 49 6 (2006) 1137-1157
53. Hitt M.A., Dacin M.T., Levitas E., Arregle J.-L., and Borza A. Partner selection in emerging and developed market contexts: Resource-based and organizational learning perspectives. Academy of Management Journal 43 3 (2000) 449-468
54. Hofstede G. Culture's consequences: International difference in work-related values (1980), Sage, Beverly Hills, CA
55. Hoskisson R., and Turk T. Corporate restructuring: Governance and control limits of the internal market. Academy of Management Review 15 (1990) 459-477
56. Hsiao C. Panel analysis for metric data. In: Arminger G., Clogg C.C., and Sobel M.E. (Eds). Handbook of statistical modeling for social and behavior science (1995), Plenum Press, New York
57. Hughes A., and Wood E. Rethinking innovation comparisons between manufacturing and services: The experience of the CBR SME surveys in the UK. In: Metcalfe J.S., and Miles I. (Eds). Innovation systems in the service economy; Measurement and case study analysis (2000), Kluwer, Boston 105-124
58. Hughes J.S., Logue D.E., and Sweeny R.J. Corporate international diversification and market-assigned measures of risk and diversification. Journal of Financial and Quantitative Analysis 10 (1975) 627-637
59. Hymer S. The international operations of national firms: A study of direct foreign investment (1976), MIT Press, Cambridge, MA
60. Johanson J., and Vahlne J.E. The internationalization process of the firm: A model of knowledge development and increasing foreign commitments. Journal of International Business Studies 8 (1977) 23-32
61. Jung Y. Multinationality and performance. Journal of Business Research 23 (1991) 179-187
62. Kapur D., and Ramamurti R. India's emerging competitive advantage in services. Academy of Management Executive 15 2 (2001) 20-31
63. Karmakar U. Will you survive the services revolution?. Harvard Business Review (2004) 101-107
64. Khanna T., and Palepu K. Why Focused Strategies may be wrong for emerging markets?. Harvard Business Review 4 (1997) 41-51
65. Khanna T., and Palepu K. The right way to restructure conglomerates in emerging markets. Harvard Business Review 4 (1999) 125-134
66. Khanna T., and Rivkin J.W. Estimating the performance effects of business groups in emerging markets. Strategic Management Journal 22 (2001) 45-74
67. Kim W.C., Hwang P., and Burgers W.P. Global diversification strategy and corporate profit performance. Strategic Management Journal 10 1 (1989) 45-57
68. Knight G. International services marketing: Review of research, 1980-1998. Journal of Services Marketing 13 4/5 (1999) 347-361
69. Kogut B. Designing global strategies: Comparative and competitive value added chains. Sloan Management Review 27 (1985) 27-38
70. Kostova T., and Zaheer S. Organizational legitimacy under conditions of complexity: The case of the multinational enterprise. Academy of Management Review 24 (1999) 64-81
71. Kotabe M., Srinivasan S.S., and Aulakh P.S. Multinationality and firm performance: The moderating role of R&D and marketing capabilities. Journal of International Business Studies 33 1 (2002) 79-97
72. Kumar M.S. Growth, acquisition and investment: An analysis of the growth of industrial firms and their overseas activities (1984), Cambridge University Press, Cambridge, UK
73. In: Kumar K., and McLeod M.G. (Eds). Multinationals from developing countries (1981), Lexington Books, Lexington, MA
74. Lall S. The new multinationals: The spread of third world enterprises (1983), Wiley, Chichester
75. Li L. Is regional strategy more effective than global strategy in the US service industries?. Management International Review 1 (2005) 37-57 [Special issue]
76. Li L., Li D., and Dalgic T. Internationalization process of small and medium-sized enterprises. Management International Review 44 1 (2004) 93-116
77. Lu J., and Beamish P.W. International diversification and firm performance: The S-curve hypothesis. Academy of Management Journal 47 (2004) 598-609
78. Lyles M.A., and Baird I.S. Performance of joint ventures in two eastern European countries: The case of Hungary and Poland. Management International Review 34 4 (1994) 313-329
79. Mathews J.A. Dragon multinationals: New players in 21st century of globalization. Asia Pacific Journal of Management 23 (2006) 5-27
80. Mathews J.A., and Zander I. The international entrepreneurial dynamics of accelerated internationalization. Journal of International Business Studies 38 3 (2007) 387-403
81. Meyer K.E. Institutions, transaction costs, and entry mode choice in Eastern Europe. Journal of International Business Studies 32 2 (2001) 357-367
82. Michel A., and Shaked I. Multinational corporations vs. domestic corporations: Financial performance and characteristics. Journal of International Business Studies 17 3 (1986) 89-101
83. Nachum L. Geographic and industrial diversification of developing country firms. Journal of Management Studies 41 (2004) 273-294
84. Nasscom. The Indian software industry report (2001), Nasscom, New Delhi
85. Nerlove M. Further evidence on estimation of dynamic economic relations from a time series of cross-sections. Econometrics 39 2 (1971) 359-382
86. Qian G. Assessing product-market diversification of US firms. Management International Review 37 2 (1997) 127-150
87. Qian G. Determinants of profit performance for the largest US firms 1981-92. Multinational Business Review 6 2 (1998) 44-51
88. Ramaswamy K. Multinationality, configuration, and performance: A study of MNEs in the US drug and pharmaceutical industry. Journal of International Management 1 2 (1995) 231-253
89. Ramaswamy K. Organizational ownership, competitive intensity, and firm performance: An empirical study of the Indian Manufacturing Sector. Strategic Management Journal 22 (2001) 989-998
90. Ramaswamy K., Li M., and Veliyath R. Variations in ownership behavior and propensity to diversify: A study of the Indian corporate context. Strategic Management Journal 23 (2002) 345-358
91. Ray S. Performance implications of corporate strategic behavior of firms in an emerging economy during economic liberalization. Problems and Perspectives in Management 2 (2004) 246-256
92. Roth K., and O'Donnell S. Foreign subsidiary compensation strategy: An agency theory perspective. Academy of Management Journal 38 (1996) 678-703
93. Rosenzweig P., and Singh J. Organizational environments and the multinational enterprise. Academy of Management Review 16 (1991) 340-361
94. Rugman A.M. International diversification and multinational enterprise (1979), Heath, Lexington, MA
95. Rugman A. The comparative performance of US and European multinational enterprises. Management International Review 23 (1983) 4-14
96. Rugman A.M., and Verbeke A. A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies 35 1 (2004) 3-18
97. Ruigrok, W., & Wagner, H. (2005). Internationalization and Firm Performance: Meta-analytic review and future research directions, Paper presented at the Academy of International Business Conference, 2005.
98. Ruigrok W., Amann W., and Wagner H. The internationalization-performance relationship at Swiss firms: A test of the S-shape and extreme degrees of internationalization. Management International Review 47 3 (2007) 349-368
99. Sambharya R.B. The combined effect of international diversification and product diversification strategies on the performance of US based multinational corporations. Management International Review 3 (1995) 197-218
100. Sayrs L. Pooled time-series analysis (1989), Sage Publications, Newbury Park, California
101. Shaked I. Are multinational corporations safer'?. Journal of International Business Studies 17 1 (1986) 75-80
102. Siddharthan N.S., and Lall S. Recent growth of the largest US multinationals. Oxford Bulletin of Economics and Statistics (1982)
103. Sinha J. Global champions from emerging markets. McKinsey Quarterly 2 (2005) 26-36
104. Stinchcombe A.L. Social structure and organization. In: March J.G. (Ed). Handbook of organizations (1965), Rand-McNaily, Chicago 142-193
105. Stopford J., and Louis W. Managing the multinational enterprise (1972), Basic Books, New York
106. Stuart T.E. Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management Journal 21 (2000) 791-811
107. Sullivan D. Measuring the degree of internationalization of a firm. Journal of International Business Studies 25 2 (1994) 325-342
108. Sullivan D. The threshold of internationality: Replication, extension and reinterpretation. Management International Review 34 2 (1994) 165-186
109. Sunderam A., and Black S. The environment and internal organization of multinational enterprises. Academy of Management Review 17 4 (1992) 729-743
110. Svetlicic M., and Rojec M. Facilitating transition by internationalization: Outward direct investment from Central European economies in transition (2003), Ashgate, Aldershot
111. Tallman S., and Li J.T. Effects of international diversity and product diversity on the performance of multinational firms. Academy of Management Journal 39 (1996) 179-196
112. Thomas D., and Eden L. What is the shape of the multinationality-performance relationship?. Multinational Business Review 12 1 (2004) 89-110
113. Thomas D.E. International diversification and firm performance in Mexican firms: A curvilinear relationship?. Journal of Business Research 59 4 (2006) 501-507
114. UNCTAD. (2003). New FDI pattern emerging. UNCTAD: Geneva (www.unctad.org/docid=4238&intItemID=2261&lang=1).
115. Wan C.C. International diversification, industrial diversification and firm performance of Hong Kong MNCs. Asia Pacific Journal of Management 15 2 (1998) 205-217
116. Wells L.T. Third world multinationals: The rise of foreign investment from developing countries (1983), The MIT Press, Cambridge, MA
117. Yeung H. The internationalization of ethnic Chinese business firms from Southeast Asia: Strategies, processes and competitive advantage. International Journal of Urban and Regional Research 23 (1999) 11-19
118. Yiu D., Bruton G.D., and Lu Y. Understanding business group performance in an emerging economy: Acquiring resources and capabilities in order to prosper. Journal of Management Studies 42 (2005) 183-206
119. Zaheer S., and Mosakowski E. The dynamics of the liability of foreignness: A global study of survival in financial services. Strategic Management Journal 18 (1997) 439-464