What is the Shape of the Multinationality‐Performance Relationship? Academic Article uri icon


  • Previous theoretical explanations and empirical analyses of the multinationality-performance relationship have produced mixed arguments and results. Linear and inverted U-shaped relationships have been theorized and confirmed empirically. Recent research has theorized that there is a three-stage, sigmoid relationship between multinationality and performance. We contribute to the debate by showing that the impact of multinationality depends on the time dimension incorporated in the performance measure; that is, the net benefits from multinationality are likely to be higher in the longer term. The results from our sample of US manufacturing multinationals indicate that there is a three-stage, sigmoid multinationality-performance relationship. © 2004, Emerald Group Publishing Limited

author list (cited authors)

  • Thomas, D. E., & Eden, L.

citation count

  • 206

publication date

  • March 2004