Internationalization and Firm Performance –Case of Manufacturing Firms in Argentina

Phan Anh Tu

doi:10.47191/jefms/v4-i3-06

Abstract

The main objective of the study is to investigate the relationship between the degree of internationalization and the performance of businesses in the manufacturing sector in Argentina. Using a panel data collected by the World Bank over the years 2006, 2010, and 2017 of the manufacturing firms in Argentina, the regression results show empirical evidence of a non-linear relationship (an inverted-U shape) between the degree of internationalization and firm performance of manufacturing firms in Argentina. The implication of this study provides the strategic thinking for managers to understand and come up with the right strategies to reduce risks and enrich business performance in the process of internationalization.

Highlights

Argentina is an upper-middle income country (Pratt, 1990), the third largest economy in Latin America with a growth rate of 2,819% in 2017 (World Bank, 2021)
This study only studies the relationship between internationalization and business performance of firms in the manufacturing sector, so the data included in the analysis is cross-sectional data with 189 firms
The research results show that the degree of internationalization (DOI) and firm performance of manufacturing firms in Argentina is an inverted U-shaped nonlinear relationship

Summary

Introduction

Argentina is an upper-middle income country (Pratt, 1990), the third largest economy in Latin America (after Brazil and Mexico) with a growth rate of 2,819% in 2017 (World Bank, 2021). Internationalization (export and export expansion) is the economic driving force with outstanding products such as soybeans, energy and fuel, means of transport. This is the founding country of many national organizations. There are many empirical studies showing that internationalization has a linear relationship to firm business performance (Daniels & Bracker, 1989; Schwens et al, 2018). There are many studies that suggest that there is a non-linear relationship between internationalization and firm business performance (Fernández & Díez, 2015; Gomes & Ramaswamy, 1999)

Objectives

Methods

Results

Conclusion