What is the Shape of the Multinationality‐Performance Relationship?
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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.