Abstract
We test the contested multinationality-performance (M-P) relationship on a truly global sample of 335 multinational enterprises (MNEs) from 31 countries representing three regions of the world: Anglo-Saxon, Europe, Asian and emerging markets We use two measures of multinationality: foreign sales dispersion by five regions and the ratio of foreign sales to total sales (FSTS) and two measures of firm performance.(return on sales and return of assets). We also introduce the never before used GLOBE cultural practices: performance-based cultures (PBC) and socially supportive cultures (SSC) as independent variables in M-P studies. Result indicate strong support the S-curve relationship controlling for cultural practices using both the foreign sales dispersion and foreign sales/total sales (FSTS) measures of multinationality for both measures of firm performance. Peak performance for MNEs from Asia and emerging markets is lower than those from the Anglo-Saxon and European regions. PBC and SSC were both negatively related to firm performance.
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