IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v34y2025i4s096959312400132x.html
   My bibliography  Save this article

Compared to whom? Performance feedback and foreign divestment of MNEs

Author

Listed:
  • Yoo, Dam
  • Moon, Jon J.

Abstract

Drawing on the behavioral theory of the firm and attribution theory, this study examines how performance feedback based on foreign sales growth influences foreign divestment activities of MNEs. Analyzing foreign divestment deals of U.S. MNEs from 2017 to 2022, we found that MNEs tend to increase foreign divestments as a response to negative social performance feedback on foreign sales growth. Considering the distinct nature of feedback provided by historical and social aspiration levels, we further examine how historical performance feedback on foreign sales growth conditions the relationship between social performance feedback and foreign divestment decisions. Findings suggest that historical performance feedback has either complementary or substitution moderating effect, depending on whether it is consistent with social performance feedback.

Suggested Citation

  • Yoo, Dam & Moon, Jon J., 2025. "Compared to whom? Performance feedback and foreign divestment of MNEs," International Business Review, Elsevier, vol. 34(4).
    • Handle: RePEc:eee:iburev:v:34:y:2025:i:4:s096959312400132x
    DOI: 10.1016/j.ibusrev.2024.102385
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096959312400132X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2024.102385?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:34:y:2025:i:4:s096959312400132x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.