The effects of the degree of internationalization on firm performance

Ahmed Riahi-Belkaoui

International Business Review, 1998, vol. 7, issue 3, 315-321

Abstract: This study developed and tested a model that attempts to describe the influence of internationalization on firm performance. Degree of internationalization was measured by foreign revenues/total revenues. Results based on data from a cross-sectional set of U.S. multinational firms find evidence of a nonmonotonic relationship between degree of internationalization and firm performance. The rate of return on assets declines, then increases, and finally decreases slightly as the degree of internationalization increases.

Keywords: Internationalization; Firm; performance; Nonmonotonic; relationship (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (40)

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