The theoretical rationale for a multinationality-performance relationship

Jean-Francois Hennart

Management International Review, 2007, vol. 47, issue 3, No 6, 423-452

Abstract: Abstract Abstract and Key Results This paper reviews the theoretical rationale that has been advanced so far for a positive relationship between multinationality (i.e. international diversification) and performance. We show that transaction cost/internalization theory implies no direct and general relationship between international diversification and performance.

Keywords: Multinationality; International Diversification; Performance; Transaction Cost Theory; Scale Economies; Flexibility; Learning (search for similar items in EconPapers)
Date: 2007
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DOI: 10.1007/s11575-007-0023-3

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