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The M Curve and the multinationality-performance relationship of Korean INVs.
- Source :
- Multinational Business Review (Emerald Group Publishing Limited); 2013, Vol. 21 Issue 3, p214-231, 18p
- Publication Year :
- 2013
-
Abstract
- Purpose – Using data from a sample of new high technology manufacturing start-ups in Korea, the purpose of this paper is to examine the multinationality-performance relationship of international new ventures (INVs) which are born regional in terms of exporting activities. Design/methodology/approach – The paper estimates econometric models as both cubic and quartic fits between the degree of multinationality and firm performance of Korean INVs using a feasible generalized least square (FGLS) regression method. Findings – It is found that the relationship between the INVs' degree of multinationality and firm performance is M-shaped, supporting the augmentation from the traditional S-curve fit applied to multinational enterprises (MNEs). In addition, in terms of performance implications, high technology manufacturing INVs perform better in their home region than in non-home regions when the degree of multinationality is mediocre or becomes very high. Finally, these findings hold for diverse performance measures. Originality/value – This paper assesses if it is really needed to go beyond the S-shaped curve with a sample of INVs, and how much the addition of the fourth degree polynomial term may increase the empirical model's explained variance between the two model specifications. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 1525383X
- Volume :
- 21
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Multinational Business Review (Emerald Group Publishing Limited)
- Publication Type :
- Academic Journal
- Accession number :
- 90610123
- Full Text :
- https://doi.org/10.1108/MBR-06-2013-0030