Does the regional nature of multinationals affect the multinationality and performance relationship?

Faculty of Business, Brock University, 500 Glenridge Avenue, St. Catharines, Ontario L2S 3A1, Canada
International Business Review (Impact Factor: 1.51). 10/2010; 19:479-488. DOI: 10.1016/j.ibusrev.2009.02.012

ABSTRACT The traditional independent variable in the multinationality and performance literature is the ratio of foreign (F) to total (T) sales, (F/T). This can now be supplemented by a new regional variable, the ratio of regional (R) to total (T) sales, i.e. (R/T). Data are presented on both (F/T) and (R/T) for both sales and assets for a 5-year period, 2001–2005. New tests are reported on (R/T) as it affects a financial measure of performance, the Tobin’s Q. Implications are drawn for future research on the S-curve relationship between multinationality and performance in the light of this regional phenomenon.

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