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When over internationalized companies reduce their international footprint

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  • Buigues, Pierre-André
  • Lacoste, Denis
  • Lavigne, Stéphanie

Abstract

This paper questions if the most advanced companies in terms of internationalization tend to reduce their international exposure overtime. On a sample of highly internationalized multinationals observed over a 12 year-period (1997–2008), we discuss and explore the effects of internationalization on performance and we find an inverted U-shaped relationship between internationalization, confirming the existence of an optimal degree of internationalization. The major finding of this research is that beyond this optimum, the most advanced companies in terms of internationalization tend to reduce their international footprint over time, unlike the other companies.

Suggested Citation

  • Buigues, Pierre-André & Lacoste, Denis & Lavigne, Stéphanie, 2015. "When over internationalized companies reduce their international footprint," International Business Review, Elsevier, vol. 24(6), pages 1039-1047.
    • Handle: RePEc:eee:iburev:v:24:y:2015:i:6:p:1039-1047
    DOI: 10.1016/j.ibusrev.2015.04.006
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