The Empirics of Multinationality and Performance

Abstract

In this paper, I address issues concerning the empirical estimation of a relationship between firm performance and its degree of multinationality. I argue for greater delineation of the underlying nature of firms’ multinationality and point to several statistical issues regarding estimation that appear to need resolution, but which appear to have been largely neglected in the literature that has examined for a multinationality–performance relationship. Among these are endogeneity of the multinationality construct in the performance relationship and the likelihood that the multinationality–performance relationship is heterogeneous across firms.

Citation

Bowen, H.P. (2007), "The Empirics of Multinationality and Performance", Rugman, A.M. (Ed.) Regional Aspects of Multinationality and Performance (Research in Global Strategic Management, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 113-142. https://doi.org/10.1016/S1064-4857(07)13006-0