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Internationalization Speed and Firm Performance: A Study of the Market-Seeking Expansion of Retail MNEs

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  • Alexander Mohr

    (University of Kent)

  • Georgios Batsakis

    (Brunel University London)

Abstract

Existing research is divided on whether firms that rapidly expand their overseas operations perform better than firms that internationalize slowly. Drawing on Penrose’s theory of the growth of the firm, we argue that the positive effects of rapid internationalization give way to negative effects with increasing internationalization speed, leading to an inverted U-shaped association between internationalization speed and firm performance. We analyze the market-seeking expansion of 110 retailers over a 10-year period (2003–2012) and find support for a curvilinear relationship between internationalization speed and firm performance that is moderated by the geographic scope of firms’ internationalization path and firms’ international experience. Our study contributes to resolving conflicting views on the link between internationalization speed and firm performance.

Suggested Citation

  • Alexander Mohr & Georgios Batsakis, 2017. "Internationalization Speed and Firm Performance: A Study of the Market-Seeking Expansion of Retail MNEs," Management International Review, Springer, vol. 57(2), pages 153-177, April.
    • Handle: RePEc:spr:manint:v:57:y:2017:i:2:d:10.1007_s11575-016-0284-9
    DOI: 10.1007/s11575-016-0284-9
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