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Does the regional nature of multinationals affect the multinationality and performance relationship?

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  • Rugman, Alan M.
  • Oh, Chang Hoon

Abstract

The traditional independent variable in the multinationality and performance literature is the ratio of foreign (F) to total (T) sales, (F/T). This can now be supplemented by a new regional variable, the ratio of regional (R) to total (T) sales, i.e. (R/T). Data are presented on both (F/T) and (R/T) for both sales and assets for a 5-year period, 2001-2005. New tests are reported on (R/T) as it affects a financial measure of performance, the Tobin's Q. Implications are drawn for future research on the S-curve relationship between multinationality and performance in the light of this regional phenomenon.

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Bibliographic Info

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 19 (2010)
Issue (Month): 5 (October)
Pages: 479-488

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Handle: RePEc:eee:iburev:v:19:y:2010:i:5:p:479-488

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Related research

Keywords: Compustat Internationalization Internalization Multinationality and performance Regional multinationals Regional sales Regional assets S-curve Tobin's Q;

References

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Citations

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Cited by:
  1. Sui, Sui & Yu, Zhihao & Baum, Matthias, 2012. "Prevalence and Longitudinal Trends of Early Internationalisation Patterns among Canadian SMEs," MPRA Paper 41177, University Library of Munich, Germany.
  2. Stephanie Fernhaber, 2013. "Untangling the relationship between new venture internationalization and performance," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 220-242, September.
  3. Oh, Chang Hoon & Rugman, Alan M., 2012. "Regional integration and the international strategies of large European firms," International Business Review, Elsevier, vol. 21(3), pages 493-507.

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