Lu, Beamish (2004)

Question 1

RQ: what is (which form takes) the relationship between multinationality and firm performance

Answer 1

H1: (SUP) The relationship between geographic diversification and firm performance is nonlinear, with the slope negative at low levels of geographic diversification, positive at medium levels of geographic diversification, and negative at high levels of geographic diversification

H2: (SUP) Intangible assets (know-how, patents, brands) positively moderate the exploitation benefits of a firm’s internationalization strategy. (Development of IA requires considerable resources, BUT an IA’s value does not depreciate when used in different markets.)

Question 2

Key message

Answer 2

• Intangible assets are great benefits for firms geographic expansion
• Managers should take a long-term view of internationalization
• Managers should develop capabilities for managing complexity