Abstract

The article examines the relationship between degree of internationalization (DOI) and performance before and after controlling for duration-related effects. A sample of 4,486 observations of 786 U.S. internationalized firms from 1979 to 1996 was analyzed. It is hypothesized that the relationship between DOI and performance is monotonically negative, with negative consequences slowing down at initial degrees and speeding up at higher levels of DOI. It is argued that an internationalizing firm does not achieve a performance higher than a comparable non-internationalized counterpart at any stage of internationalization.

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