| 1. |
- Schmuck, Alice, 1989-
(författare)
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A Tale of Two Concepts : Exploring the Relationship between Firm Performance and Multinationality
- 2022
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- Despite being a pivotal topic over the past 50 years, the benefits and costs of internationalization are not well understood. A substantial body of research in international business, strategy, and general management is devoted to understanding firm internationalization and its connection to a firm’s financial performance; however, results are inconclusive.This thesis explores firm performance in relation to internationalization processes and, consequently, a firm’s degree of multinationality. The aim is to critically assess the extant literature, evaluate prevailing underlying assumptions, and investigate the causal direction between the two key concepts: firm performance and multinationality. A sequential, multiphase research approach divides the research process into three consecutive phases – exploratory, confirmatory, and explicatory – allowing for a combination of methods, including a systematic literature review, fixed effects logistic regression on 13 years of unbalanced panel data, curvilinear OLS regression on panel data, and content analysis of pilot case studies. Together, this provides a holistic response to the research question: What role does firm performance play in relation to multinationality?Findings reveal a paradigmatic bias in previous research, where authors propagate the ubiquitous causal assumption that multinationality affects firm performance. Instead, this thesis finds solid statistical support for a reversed causal relationship – firm performance drives multinationality. The theoretical arguments are derived from behavioral theories, including the resource-based view, the internationalization process model, and prospect theory. This thesis bridges organizational-level with individual-level theories, contributing to the discussion on managerial decision-making in the internationalization process.
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| 2. |
- Schmuck, Alice, 1989-, et al.
(författare)
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Patterns of Inconsistency : A Literature Review of Empirical Studies on the Multinationality–Performance Relationship
- 2023
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Ingår i: Critical Perspectives on International Business. - : Emerald Group Publishing Limited. - 1742-2043 .- 1758-6062. ; 19:2, s. 253-298
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Forskningsöversikt (refereegranskat)abstract
- Purpose: This study aims to understand the performance implications of when a business internationalizes. Many managers take the performance implications of internationalization for granted. Whether seeking a broader customer base or cost reduction through cross-border outsourcing, the overwhelming belief is that internationalization leads to higher profits.Design/methodology/approach: This paper offers a systematic review, content analysis and cross-tabulation analysis of 115 empirical studies from over 40 major journals in management, strategy and international business between 1977 and 2021. Focusing on research settings, sample characteristics, underlying theoretical approaches, measurements of key variables and moderators influencing the multinationality and performance relationship, this study offers a detailed account of definitions and effects.Findings: The findings of this study suggest a tenuous connection between internationalization and performance. No strain of research literature conclusively identifies a consistent direct path from internationalization to performance. The context specificity of the relationship makes general declarations impossible.Research limitations/implications: Future researchers should recognize that internationalization is a process taking different forms, with no specific dominant form. General declarations are misleading. The focus should be on the process of internationalization rather than on the outcome.Originality/value: This study contributes to the international business literature by exploring reasons for the inconsistent results and lack of consensus. Through a detailed account of definitions and effects, this paper explores the lack of consensus as well as the identified shapes of the relationship.
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| 3. |
- Schmuck, Alice, 1989-, et al.
(författare)
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The Relationship between Multinationality and Performance: : A critical Literature Review and Directions for Future Research
- 2017
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Konferensbidrag (refereegranskat)abstract
- This paper offers a systematic review of the international business, strategy, and general management literatures, analyzing 90 empirical studies from 30 major journals between 1977 and 2017, with focus on (1) research settings, (2) measurements of key variables, (3) underlying theoretical approaches, and (4) moderators influencing the M-P relationship. Through a detailed account of definitions and effects, the paper explores reasons for inconsistent results and lack of consensus within and across research streams as well as in relation to the identified shapes of the M-P relationship. The most striking result of the preliminary analysis is the lack of consistency. Therefore, the underlying assumption of a causal relationship between multinationality and performance remains questionable. The paper concludes with propositions that open up for future research.
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| 4. |
- Schmuck, Alice, 1989-, et al.
(författare)
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The Relationship between Performance and Internationlization
- 2019
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Konferensbidrag (refereegranskat)abstract
- There is a plethora of research about the effect of multinationality on performance, yet results are contradictory and inconclusive. A growing number of researchers are reframing the research question to consider the effect of performance on multinationality. In line with these researchers, this paper develops a theoretical argument combining the resource-based view with prospect theory to derive two sets of competing hypotheses. The hypotheses were tested using non-linear ordinary least squares regressions on an unbalanced panel of 1680 firm-year observations of Swedish publicly listed firms over 12 years. Our results show that in line with prospect theory, firms with quite negative performance often have high internationalization. The rationale is that when growth and profitability are restricted by domestic markets, managers are risk-takers. As profits improve, risk-taking behavior in terms of internationalization drops. Then, as performance turns positive and grows, in accordance with the resource-based view, managers use slack resources to pursue internationalization. The result is a positive U-shaped relationship between multinationality and performance. As a robustness test, the more traditional causal relationship was also tested. Results showed a much lower explained variance, marginally significant relationships, and an illogical outcome. The effect of performance on multinationality is the substantially superior model.
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| 5. |
- Schmuck, Alice, 1989-, et al.
(författare)
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Turning the Tables : The Relationship Between Performance and Multinationality
- 2022
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Ingår i: MIR: Management International Review. - : Springer Nature. - 0938-8249 .- 1861-8901. ; 62:1, s. 3-26
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Tidskriftsartikel (refereegranskat)abstract
- The abundant research on the multinationality-performance relationship has yet to provide cohesive findings concerning the nature and shape of the relationship. This paper joins a small, but growing body of research considering the effect of performance on multinationality. Drawing on resource-based theory and prospect theory, the authors develop competing hypotheses for the impact of performance on multinationality. Using non-linear ordinary least squares regression on unbalanced panel data for 2066 firm-year observations of Swedish publicly listed firms over 12 years, the authors find strong support for a positive U-shaped relationship. The foremost contribution is that performance drives internationalization, much more than vice versa. The model for the traditional causal direction from multinationality to performance explains less than half the variance, has marginal significance on key variables, and has an illogical outcome. Another contribution is how risk-taking attitudes, in accordance with prospect theory, explain a high level of internationalization when performance is negative. As performance rises towards zero, internationalization drops to an inflection point, where in accordance with resource-based theory, the degree of internationalization begins rising. This debunks the prevalent view that internationalization is contingent upon positive performance and abundant resources.
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