The Degree of Internationalization and Firm Productivity : Empirical Evidence from Large Multinationals

Tsionas, Mike G. and Tzeremes, Nickolaos G. (2022) The Degree of Internationalization and Firm Productivity : Empirical Evidence from Large Multinationals. British Journal of Management, 33 (4). pp. 1969-1990. ISSN 1045-3172

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This paper examines whether the S-shaped and M-shaped hypotheses explain the internalization firm's productivity relationship. The internationalization–performance (I–P) literature uses accounting-based performance indicators in order to examine such a relationship. In contrast to the mainstream literature, productivity and its components (efficiency and technical change) are used as a firm's performance measures. Utilizing a semi-parametric model based on artificial neural network techniques, accounting for potential heterogeneity, firms’ productivity, efficiency and technical change levels are estimated. The innovative methodological framework is applied in a sample of large, experienced non-financial firms over the period 1992–2019. The empirical evidence suggests that firms’ internationalization in relation to their productivity and efficiency levels exhibits an inverted U-shaped relationship. This finding corresponds to the last two stages of the S-shaped and M-shaped hypotheses. Furthermore, the evidence suggests that internationalization has a positive nonlinear effect on firms’ innovation capacity (technical change). Overall, the empirical findings from data-driven techniques applied, support the view that the effect of internationalization on firms’ productivity levels is asymmetric.

Item Type:
Journal Article
Journal or Publication Title:
British Journal of Management
Additional Information:
This is the peer reviewed version of the following article: Tsionas, M.G. and Tzeremes, N.G. (2022), The Degree of Internationalization and Firm Productivity: Empirical Evidence from Large Multinationals. Br. J. Manag., 33: 1969-1990. which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Uncontrolled Keywords:
?? management of technology and innovationstrategy and managementgeneral business, management and accountingbusiness, management and accounting(all)strategy and managementmanagement of technology and innovation ??
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Deposited On:
19 Oct 2022 12:10
Last Modified:
26 Jan 2024 01:29