Focus if you are strong? A critical note on the performance effects of firm resources and multinationality in new MNEs
Krystian Barłożewski , Piotr Trąpczyński
AbstractAs research on the performance effects of multinationality has generated inconsistent findings for the past decades, a critical discussion in the IB community has revolved around both its methodological and conceptual underpinnings. It has been pointed out, inter alia, that multinationality in itself cannot translate into superior performance, since it is firm-specific advantages (FSAs) which allow the firm to develop international operations. Hence, in our study we argue that multinationality affects the relationship between resources and performance, rather than having a direct effect. We develop a theoretical argumentation rooted in the resource-based view (RBV), international diversification literature and organisational learning perspective, which we then test on a longitudinal dataset containing 304 new MNEs from the mid-range emerging market of Poland and a total of 1167 firm-year observations. We find that while resources do positively affect the performance of new MNEs, this relationship becomes weaker for higher levels of multinationality. However, the negative moderating effect of multinationality becomes weaker for larger, more experienced new MNEs which are more able to handle the complexity of managing foreign operations.
|Publication size in sheets||0.3|
|Book||Piscitello Lucia, Elia Stefano (eds.): Internationalization in the information age. Proceedings of the 43rd European International Business Academy Conference, 2017, European International Business Academy, ISBN 978-88-6493-042-8, 140 p.|
|Keywords in English||multinationality, performance, resource-based view|
|Not used for evaluation||yes|
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