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Performance comparison between domestic and international firms in the high-technology industry

Author

Listed:
  • Parvinder Arora

    (Seneca College)

  • Qian Long Kweh

    (Canadian University Dubai)

  • Deepanker Mahajan

    (Shopicurious India Pvt. Ltd)

Abstract

Investors pay premiums for internationally diversified firms because these companies have competitive advantages, including access to new channels of distribution. This study analyzes performance trends and compares the performance of domestic and internationally diversified firms in the high-technology industry for the period of 1997 to 2011. The study sample includes 19,921 firm-year observations comprising firms identified by TechAmerica. Findings show that internationally diversified firms perform better than domestic high-technology firms. These findings remain the same even when similar tests are conducted for different sub-industries. Results are validated via ordinary least square and autoregressive fractionally integrated moving average. Results of this study suggest that internationalization improves the performance of companies in certain sub-industries by enabling them to gain additional competitive advantages.

Suggested Citation

  • Parvinder Arora & Qian Long Kweh & Deepanker Mahajan, 2018. "Performance comparison between domestic and international firms in the high-technology industry," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(4), pages 477-490, December.
    • Handle: RePEc:spr:eurasi:v:8:y:2018:i:4:d:10.1007_s40821-018-0104-1
    DOI: 10.1007/s40821-018-0104-1
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    Cited by:

    1. María del Carmen Peces & María Amalia Trillo, 2023. "Relational Capital in the Technology Sector: An International Strategic Model," Sustainability, MDPI, vol. 15(5), pages 1-18, February.

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    More about this item

    Keywords

    Internationalization; High-technology firms; Firm performance; TechAmerica;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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