How Good are Multinationality–Performance ( M‐P ) Empirical Studies?

Abstract

We critically evaluate strong views in the scholarly literature that suggest a linkage between multinationality ( M ) and performance ( P ). Building upon this critical analysis, we propose a new M‐P conceptual approach as well as a testing framework, consisting of 12 subtests, to assess the quality of the M‐P empirical literature to date. We observe that many of the most cited studies were poorly conceived and simply cannot lead to reasonable conclusions on possible M‐P linkages. The single most important flaw is the neglect of the multinational enterprise's firm‐specific advantages as the main driving force behind internationalization strategies and related effects on performance.

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