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The effects of the degree of internationalization on firm performance

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  • Riahi-Belkaoui, Ahmed

Abstract

This study developed and tested a model that attempts to describe the influence of internationalization on firm performance. Degree of internationalization was measured by foreign revenues/total revenues. Results based on data from a cross-sectional set of U.S. multinational firms find evidence of a nonmonotonic relationship between degree of internationalization and firm performance. The rate of return on assets declines, then increases, and finally decreases slightly as the degree of internationalization increases.

Suggested Citation

  • Riahi-Belkaoui, Ahmed, 1998. "The effects of the degree of internationalization on firm performance," International Business Review, Elsevier, vol. 7(3), pages 315-321, June.
    • Handle: RePEc:eee:iburev:v:7:y:1998:i:3:p:315-321
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    References listed on IDEAS

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