Does the regional nature of multinationals affect the multinationality and performance relationship?

Rugman, A. M. and Oh, C. H. (2010) Does the regional nature of multinationals affect the multinationality and performance relationship? International Business Review, 19 (5). pp. 479-488. ISSN 0969-5931 doi: 10.1016/j.ibusrev.2009.02.012

Abstract/Summary

The traditional independent variable in the multinationality and performance literature is the ratio of foreign (F) to total (T) sales, (F/T). This can now be supplemented by a new regional variable, the ratio of regional (R) to total (T) sales, i.e. (R/T). Data are presented on both (F/T) and (R/T) for both sales and assets for a 5-year period, 2001–2005. New tests are reported on (R/T) as it affects a financial measure of performance, the Tobin's Q. Implications are drawn for future research on the S-curve relationship between multinationality and performance in the light of this regional phenomenon.