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Development and validation of a firm-level vertical and horizontal internationalization metric

Edmund R. Thompson, Gerard Dericks and Felicia Fai

International Business Review, 2019, vol. 28, issue 3, 533-543

Abstract: The lack of valid and reliable measures of firm-level vertical and horizontal internationalization is impeding the development and testing of hypothesized relationships between these respective dimensions of internationalization and a range of important MNE characteristics, actions, and effects. Through a series of qualitative and quantitative studies using data collected from senior MNE executives (total N = 3,146), we develop and validate a scale to measure both vertical and horizontal firm-level internationalization. Subscales for each type of internationalization prove to be unidimensional, reliable, temporally stable, and to have predictive, cross-cultural, cross-sectoral, and discriminant validity.

Keywords: Vertical internationalization; Horizontal internationalization; Measurement; Scale development (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:eee:iburev:v:28:y:2019:i:3:p:533-543