English, Article edition: A three-stage theory of international expansion: the link between multinationality and performance in the service sector Farok J Contractor; Sumit K Kundu; Chin-Chun Hsu

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Physical Description
  • article
Language
  • English

Edition details

Title
  • A three-stage theory of international expansion: the link between multinationality and performance in the service sector
Author
  • Farok J Contractor
  • Sumit K Kundu
  • Chin-Chun Hsu
Physical Description
  • article
Notes
  • It is generally assumed that the performance of a firm improves with greatermultinationality. Yet recent empirical studies have shown both a U-shapedrelationship (which suggests an initially negative effect of international expansionon performance, before the positive returns of international expansion arerealized) and an inverted-U-shaped relationship (which suggests thatinternational expansion beyond an optimal level is again detrimental toperformance, and results in a negative slope). This paper proposes a new unifiedthree-stage theory of international expansion that incorporates both concepts in asigmoid hypothesis. It then tests this on data from 11 service industries,highlighting the difference between knowledge-based and capital-intensiveservice sectors. Journal of International Business Studies (2003) 34,5–18. doi:10.1057/​palgrave.jibs.8400003
  • RePEc:pal:jintbs:v:34:y:2003:i:1:p:5-18
Language
  • English
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