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Strategic Patterns of Internationalization and Performance Variability: Effects of US-Based MNC Cross-Border Dispersion, Integration, and Outsourcing

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  • Mauri, Alfredo J.
  • Neiva de Figueiredo, João
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    Abstract

    This paper examines how the performance variability of an MNC is affected by the strategic patterns it has used to expand abroad. The paper uses data from the Bureau of Economic Analysis annual surveys of U.S. companies with affiliates abroad to empirically support the hypotheses that: (a) cross-border geographic dispersion contributes to a decrease in performance variability; (b) cross-border integration contributes to an increase in performance variability; and (c) outsourcing contributes to a decrease in performance variability. Furthermore, the combined effects from the interaction of these strategic patterns are found to increase performance variability.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 18 (2012)
    Issue (Month): 1 ()
    Pages: 38-51

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    Handle: RePEc:eee:intman:v:18:y:2012:i:1:p:38-51

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    Related research

    Keywords: Internationalization; Performance variability; Geographic dispersion; Global integration; Outsourcing;

    References

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    Cited by:
    1. Mauri, Alfredo J. & Lin, Jing & Neiva De Figueiredo, João, 2013. "The influence of strategic patterns of internationalization on the accuracy and bias of earnings forecasts by financial analysts," International Business Review, Elsevier, vol. 22(4), pages 725-735.
    2. Alcantara, Lailani Laynesa & Mitsuhashi, Hitoshi, 2012. "Make-or-Break Decisions in Choosing Foreign Direct Investment Locations," Journal of International Management, Elsevier, vol. 18(4), pages 335-351.
    3. Schmeisser, Bjoern, 2013. "A Systematic Review of Literature on Offshoring of Value Chain Activities," Journal of International Management, Elsevier, vol. 19(4), pages 390-406.
    4. Denk, Nikola & Kaufmann, Lutz & Roesch, Jan-Frederik, 2012. "Liabilities of Foreignness Revisited: A Review of Contemporary Studies and Recommendations for Future Research," Journal of International Management, Elsevier, vol. 18(4), pages 322-334.

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