MNE's dependence on foreign operations and performance: a study of MNEs from the "Triad" regions

Paula D. Harveston, Ben L. Kedia and John D. Francis

International Business Review, 1999, vol. 8, issue 3, 293-307

Abstract: The impact of the dependence of multinational enterprises (MNEs) on foreign operations and corporate performance has been widely recognized as an important issue for researchers and practitioners (see Kim, Hwang & Burgers (1989), Strategic Management Journal, 10, 45-57). However, previous studies have tended to focus on MNEs located in a single country or a comparison of firms in two different countries. To address this gap in the literature, this study examines the relationship between foreign dependence and performance of multinational enterprises originating from the Triad regions of the Pacific Rim, Western Europe and North America. Results show a positive significant relationship between the extent of foreign dependence and performance, although the nature of this relationship is moderated by the region of origin in the Triad. Multiple performance measures were utilized to capture the long- and short-term orientations. The results show that short-term orientation measures are associated with higher performance for North American and European MNEs with high dependence on foreign operations but not for Pacific Rim MNEs. However, Pacific Rim MNEs were found to focus more on achieving long-term performance goals when compared to the North American and European MNEs.

Keywords: MNE's; Triad; regions (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (4)

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