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The internationalization and performance of a firm: Moderating effect of a firm's behavior

  • Lin, Wen-Ting
  • Liu, Yunshi
  • Cheng, Kuei-Yang
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    Empirical studies show mixed results regarding the relationship between a firm's internationalization and performance. One reason is that these studies used various economic market firms as their research sample. Thus, this study on a firm's internationalization is based on newly industrialized economies to shed additional light on this relationship. According to the firm behavioral theory, the moderating impact of a firm's internal organizational slack and attainment discrepancy are critical for enhancing a firm's performance in the internationalization process. We tested these hypotheses using longitudinal data (2000-2005) from 179 high-technology listed companies in Taiwan. We extended the behavioral theory of the firm to explain the moderating effect on the internationalization-performance model. We found that firms tend to exhibit positive performance in internationalization when they have a higher level of organizational slack and attainment discrepancy.

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

    Volume (Year): 17 (2011)
    Issue (Month): 1 (March)
    Pages: 83-95

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    Handle: RePEc:eee:intman:v:17:y:2011:i:1:p:83-95
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