search query: @indexterm INTERNATIONAL ECONOMICS / total: 437
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| Author: | Contractor, F. J. Kundu, S. K. Hsu, C.-C. |
| Title: | A Three-Stage Theory of International Expansion: the Link between Multinationality and Performance in the Service Sector |
| Journal: | Journal of International Business Studies
2003 : JAN, VOL. 34:1, p. 5-18 |
| Index terms: | INTERNATIONAL ECONOMICS THEORIES THEORY OF THE FIRM SERVICE DEVELOPMENT ORGANIZATIONS |
| Language: | eng |
| Abstract: | It is generally assumed that the performance of a firm improves with greater multinationality. Yet recent empirical studies have shown both a U-shaped relationship (which suggests an initially negative effect of international expansion on performance) and an inverted- U-shaped relationship (which suggests that international expansion beyond an optimal level is again detrimental to performance, and results in a negative slope). This paper proposes a new unified three-stage theory of international expansion that incorporates both concepts in a sigmoid hypothesis. It then tests this on data from 11 service industries, highlighting the difference between knowledge-based and capital-intensive service sectors. |
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