Firm-Specific Assets, Multinationality, and Financial Performance: A Meta-Analytic Review and Theoretical Integration

Academy of Management Journal, Forthcoming

59 Pages Posted: 7 Sep 2010

See all articles by Ahmet H. Kirca

Ahmet H. Kirca

Michigan State University - Department of Marketing and Supply Chain Management

G. Tomas M. Hult

Michigan State University

Kendall Roth

University of South Carolina

S. Tamer Cavusgil

Georgia State University

Morys Perryy

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management

M. Billur Akdeniz

University of New Hampshire

Seyda Deligonul

St. John Fisher College

Jeannette A. Mena

University of Mississippi - School of Business Administration

Jessica J. Hoppner

George Mason University - Department of Marketing

Joseph C. Miller

Rochester Institute of Technology (RIT)

Ryan C. White

Michigan State University - Department of Marketing and Supply Chain Management

Wesley A. Pollitte

University of Southern Mississippi

Date Written: September 6, 2010

Abstract

Drawing upon internalization theory, this study investigates the complex relationships involving firm-specific assets, multinationality, and financial performance. Through a meta-analysis of 120 independent samples reported in 111 studies, we test the predictions of internalization theory in the context of the multinationality-performance relationship. Moreover, we further develop and refine our understanding of internalization theory with a focus on the effects of firm-specific assets on the multinationality-performance relationship. Findings suggest that while advertising intensity fully mediates the relationship between multinationality and performance, R&D intensity has both direct and indirect effects on firm performance. In addition, the results delineate the conditions under which firm-specific assets have the strongest impact on the extent to which multinationality relates to performance. Meta-analytic evidence also suggests that multinationality has intrinsic value above and beyond the intangible assets that firms possess after controlling for firms’ international experience, age, size, and product diversification.

Suggested Citation

Kirca, Ahmet H. and Hult, G. Tomas M. and Roth, Kendall and Cavusgil, S. Tamer and Perryy, Morys and Akdeniz, M. Billur and Deligonul, Seyda and Mena, Jeannette A. and Hoppner, Jessica J. and Miller, Joseph C. and White, Ryan C. and Pollitte, Wesley A., Firm-Specific Assets, Multinationality, and Financial Performance: A Meta-Analytic Review and Theoretical Integration (September 6, 2010). Academy of Management Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1672973 or http://dx.doi.org/10.2139/ssrn.1672973

Ahmet H. Kirca

Michigan State University - Department of Marketing and Supply Chain Management ( email )

East Lansing, MI
United States

G. Tomas M. Hult (Contact Author)

Michigan State University ( email )

East Lansing, MI 48824-1121
United States

Kendall Roth

University of South Carolina ( email )

701 Main Street
Columbia, SC 29208
United States

S. Tamer Cavusgil

Georgia State University

35 Broad Street
Atlanta, GA 30303-3083
United States

Morys Perryy

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management ( email )

East Lansing, MI 48824-1121
United States

M. Billur Akdeniz

University of New Hampshire ( email )

15 Academic Way McConnell Hall
Durham, NH 03824
United States

HOME PAGE: http://wsbe.unh.edu/m-billur-akdeniz

Seyda Deligonul

St. John Fisher College ( email )

Jeannette A. Mena

University of Mississippi - School of Business Administration ( email )

PO Box 3986
Oxford, MS 38677
United States

Jessica J. Hoppner

George Mason University - Department of Marketing ( email )

United States
703.993.1796 (Phone)

Joseph C. Miller

Rochester Institute of Technology (RIT) ( email )

Ryan C. White

Michigan State University - Department of Marketing and Supply Chain Management ( email )

East Lansing, MI
United States

Wesley A. Pollitte

University of Southern Mississippi ( email )

Hattiesburg, MS 39406
United States

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