When over internationalized companies reduce their international footprint

Pierre-André Buigues, Denis Lacoste and Stéphanie Lavigne

International Business Review, 2015, vol. 24, issue 6, 1039-1047

Abstract: This paper questions if the most advanced companies in terms of internationalization tend to reduce their international exposure overtime. On a sample of highly internationalized multinationals observed over a 12 year-period (1997–2008), we discuss and explore the effects of internationalization on performance and we find an inverted U-shaped relationship between internationalization, confirming the existence of an optimal degree of internationalization. The major finding of this research is that beyond this optimum, the most advanced companies in terms of internationalization tend to reduce their international footprint over time, unlike the other companies.

Keywords: Internationalization; Multinational corporations; Optimum degree of internationalization; Performance (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/j.ibusrev.2015.04.006

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