How dimensions of internationalization shape the MNE's renewal capability: Multidimensional and multilevel considerations

Monica Riviere, A. Erin Bass

Research output: Contribution to journalArticlepeer-review

Abstract

We investigate the theoretical and empirical implications of internationalization as a multidimensional and multilevel construct and its relationship to the renewal capability of the firm. Theoretically, internationalization describes a diverse range of cross-border activities by the multinational enterprise (MNE), and thus carries with it multiple dimensions of depth, breadth, and speed. Empirically, internationalization contains both within- and between-MNE variance, each with potentially different effects on the MNE's renewal capability. Using a unique, longitudinal dataset of 94 MNEs, we find support that each dimension and level of internationalization relates differently to the renewal capability of the MNE. At the within-level, the MNE internationalization breadth is negatively related to the its renewal capability, yet internationalization speed is positively related to renewal. At the between-level, the depth of internationalization is positively related to the MNE's renewal capability. In concert, our results suggest that the effects of internationalization on important outcomes cannot be simplified into general relationships. Rather, attention to the nuances of internationalization, especially as related to the MNE's capabilities, is needed.

Original languageEnglish (US)
Article number101862
JournalLong Range Planning
Volume52
Issue number4
DOIs
StatePublished - Aug 2019

Keywords

  • MNE internationalisation process
  • Multi-level modeling
  • Multinational corporation (MNCs) and enterprises (MNEs)
  • Renewal capability

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Finance
  • Strategy and Management

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