Internationalization and Performance: The S-curve Hypothesis and Product Diversity Effect

Chin-Chun Hsu
September 2006
Multinational Business Review (St. Louis University);Fall2006, Vol. 14 Issue 2, p29
Academic Journal
This study uses data from 255 global pharmaceutical! biotechnological companies to (1) determine the impact of internationalization on firm performance and (2) explore the moderating effect that product diversity has on the relationship between internationalization and company performance. The results highlight the rewards of pursuing internationalization and demonstrate that companies benefit from internationalization activities by achieving higher overall performance. This finding contrasts with recent empirical evidence that an S-curve relationship exists. Analysis of the moderating effect of product diversity indicates a strong effect on the internationalization-performance relationship and thus shows that the payoff from internationalization is moderated by product diversity.


Related Articles

  • THEORIES OF THE MULTINATIONAL ENTERPRISES - TWO DIFFERENT APPROACHES. Claudia, OGREAN; Mihaela, HERCIU // Studies in Business & Economics;Apr2012, Vol. 7 Issue 1, p138 

    Multinational enterprises - as key determinants and results (in the same time) of the globalization process that characterize the economic world nowadays - know a lot of different approaches in the academic literature; this is a consequence of the refinement (in time) of the (firm's)...

  • The theory of international business pre-Hymer. Buckley, Peter J. // Journal of World Business;Jan2011, Vol. 46 Issue 1, p61 

    Abstract: This paper examines the theory of international business before 1960 when Stephen Hymer wrote his seminal thesis. It is shown that there existed a considerable amount of theory, but this was uncodified, unsystematic, fragmented and not institutionalised in a single academic discipline....

  • THE GLOBALIZATION OF WORLD ECONOMY - DILEMMAS AND CHALLENGES. Ćetković, Jasmina; Ţarković, Milos // Proceedings of the International Scientific Conference on Practi;Apr2012, p36 

    In this document are presented political, economic, social and cultural aspects of globalization. Positive and negative effects of globalization on the economic and overall social welfare will be explored. This document contains successful examples of global economies, as well as impact of...

  • GLOBALIZAREA AFACERILOR ÅžI POLITICA ECONOMICX NAÅ¢IONALA. GOLEA, Valentina // Review of Management & Economic Engineering;2008, Vol. 7 Issue 4, p35 

    Globalization of business and production creates deeper bounds between national economies and communities' destinies . Generally speaking, direct foreign investments may have a positive impact upon national welfare or may as well have a negative one; however, a lot of hyper-globalists state that...

  • GLOBALIZATION, A COMPLEX AND CONTRADICTORY PROCESS WITH MULTIPLE MEANINGS. Irina, Toboşaru // Annals of the University of Oradea, Economic Science Series;2008, Vol. 17 Issue 2, p507 

    The globalization is a complex process and contradictory process, from different points of view: the historic positioning of the process, the definition of globalization and its impacts. On one hand, there is gain, advantages and wealth and on the other hand there are expenses, sacrifices,...

  • In the New Myanmar, U.S. Playing Catch-Up to China. Storey, Ian // World Politics Review (19446284);1/25/2013, p2 

    The article comments on the efforts of the U.S. and China to influence the economy and government of Myanmar. It states that Myanmar has focused its efforts and programs on improving its economy and liberalizing its political system. According to the author, China has vast interests in the...

  • The Motivation for Recent First Time Direct Investments in Australia by UK Firms. Buckley, P. J.; Mathew, A. M. // Management International Review (MIR);1979, Vol. 19 Issue 1, p57 

    This article focuses on experiences of 52 Great Britain companies who have invested in Australia between 1959 and 1972. The purpose of this is to examine the motivation for the investment and to relate this to the characteristics of the individual firms. Amongst the issues of importance are the...

  • Global Markets and National Politics: Collision Course or Virtuous Circle? Garrett, Geoffrey // International Organization;Autumn98, Vol. 52 Issue 4, p787 

    Increasing exposure to trade, foreign direct investment, and liquid capital mobility have not prompted a pervasive policy race to the neoliberal bottom among the OECD countries. One reason is that there are strong political incentives for governments to cushion the dislocations and risk...

  • Defense Trade: Implementation of Exon-Florio: GAO-06-135. Schinasi, Katherine // GAO Reports;10/6/2005, p1 

    The 1988 Exon-Florio amendment to the Defense Production Act authorizes the President to suspend or prohibit foreign acquisitions of U.S. companies that may harm national security, an action the President has taken only once. Implementing Exon-Florio can pose a significant challenge because of...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics