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An empirical analysis and extension of internalization theory in emerging markets: The role of firm-specific assets and asset dispersion in the multinationality-performance relationship
Affiliation:1. Eli Broad Graduate School of Management, Michigan State University, 632 Bogue Street, East Lansing, MI 48824, United States;2. Department of Management, College of Business Administration, San Diego State University, 5500 Campanile Drive, San Diego, CA 92182, United States;3. James K. Batten Eminent Scholar Chair in International Business, Department of Management and International Business, College of Business Administration, Florida International University, 11200 S.W. 8th St, Mango 448, Miami, FL 33199, United States;1. Universidad Rey Juan Carlos, Facultad de Ciencias Jurídicas y Sociales, Departamento de Economía de la Empresa (Adm., Dir., y Org.), Economía Aplicada II y Fundamentos del Análisis Económico, Paseo de los Artilleros, s/n, 28032 Madrid, Spain;2. Universidad Pontificia Comillas de Madrid, Facultad de Ciencias Económicas y Empresariales, Departamento de Economía, Calle Alberto Aguilera, 23, 28015 Madrid, Spain;1. Department of Marketing and Management, Texas A&M University-Central Texas, 1001 Leadership Place, Killeen, TX 76549, United States;2. Cotsakos College of Business, William Paterson University, 1600 Valley Road, Wayne, NJ 07470, United States;3. Robert B. Willumstad School of Business, Adelphi University, Garden City, NY 11530-0701, United States;1. The Chinese University of Hong Kong, Department of Management, Shatin, N.T., Hong Kong;2. University of Reading, Henley Business School, Department of Leadership, Organisations and Behaviour, Henley Center for Entrepreneurship, Whiteknights, Reading RG6 6UDE, United Kingdom;3. Faculty of Business Administration, University of Macau, Avenida da Universidade, Taipa, Macau;1. Centre for International Business (CIBUL), Leeds University Business School, University of Leeds, UK;2. Department of International Business Studies, National Chi Nan University, Taiwan;1. Henry W. Bloch School of Management, University of Missouri - Kansas City, 5110 Cherry Street, Kansas City, MO 64110, United States;2. Jindal School of Management, University of Texas at Dallas, 800 West Campbell, SM 43, Richardson, TX 75080, United States;3. College of Business, Florida State University, Tallahassee, FL 32306, United States;4. School of Business, Hong Kong Baptist University, Kowloon, Hong Kong
Abstract:This study examines the relationship between firm multinationality and financial performance with a focus on firm-specific assets and dispersion of these assets for MNCs from emerging markets. Drawing upon internalization theory, the authors reveal that while the financial performance of manufacturing MNCs depends on technological assets, service MNCs are more dependent on marketing assets to succeed in international markets. Study findings further emphasize the critical role of the industry context in emerging markets as the authors demonstrate that international asset dispersion weakens the effects of internationalization on financial performance more for MNCs in manufacturing industries than for MNCs in services.
Keywords:Multinationality  Internalization theory  Financial performance  MNCs from emerging markets
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