The relationship between multinationality and performance: Knowledge-intensive vs. capital-intensive service micro-multinational enterprises
- Authors
- Shin, Joonho; Mendoza, Xavier; Hawkins, Matthew A.; Choi, Changbum
- Issue Date
- Oct-2017
- Publisher
- ELSEVIER SCIENCE BV
- Keywords
- Micro-multinational enterprises; Service industry; Multinationality and performance relationship; SME internationalization; Spain
- Citation
- INTERNATIONAL BUSINESS REVIEW, v.26, no.5, pp 867 - 880
- Pages
- 14
- Journal Title
- INTERNATIONAL BUSINESS REVIEW
- Volume
- 26
- Number
- 5
- Start Page
- 867
- End Page
- 880
- URI
- https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/3810
- DOI
- 10.1016/j.ibusrev.2017.02.005
- ISSN
- 0969-5931
1873-6149
- Abstract
- This research explores the relationship between multinationality and firm performance (M-P) in the context of micro-multinational enterprises (mMNEs) within the service sector. We examine the moderating effects of industry characteristics using a data set of 1082 Spanish service mMNEs over an eight-year period. The empirical results provide statistical evidence that knowledge-intensive service mMNEs exhibit an inverted U-shaped M-P relationship, while capital-intensive service mMNEs present a U-shaped relationship. Our findings demonstrate that knowledge-intensive service mMNEs increase their performance in the initial stage of multinationality, encounter a threshold of internationalization at relatively low levels of multinationality and have a propensity to over-internationalize. By comparison, capital-intensive service mMNEs experience negative performance effects at low levels of multi nationality and positive ones as they further internationalize. Given that their operations are scale sensitive, they tend to expand internationally by concentrating their operations in few foreign markets as a means to overcome the liabilities of internationalization and smallness. We contribute to the literatures on multinationality research in the service sector and on SME internationalization by showing that the effects of multinationality on the performance of mMNEs depend on industry characteristics and that such contextual factors provide a better understanding of the M-P relationship. (C) 2017 Elsevier Ltd. All rights reserved.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - College of Business & Economics > School of Business Administration > 1. Journal Articles
![qrcode](https://api.qrserver.com/v1/create-qr-code/?size=55x55&data=https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/3810)
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.