Effects of firm resources on growth in multinationality

Chiung Hui Tseng, Patriya Tansuhaj, William Hallagan, James Mccullough

Research output: Contribution to journalArticle

103 Citations (Scopus)

Abstract

Multinationality refers to the extent to which firms' business activities span across national borders. Moving beyond prior emphasis on the consequences of multinational expansion, this study sheds light on the antecedents by analyzing how firm resources influence changes in multinationality. Building on the resource-based view of the firm, we propose a framework that consists of resource determinants in two categories: knowledge-based and property-based resources. Empirical results obtained from a sample of publicly held US manufacturing companies show that knowledge-based resources generate faster and longer-lasting influences on international growth than property-based resources. Specifically, resources related to technological and marketing knowledge, and property-based resources related to organizational slack and internally generated profits, are found to be significant driving forces behind growth in multinationality. This study not only advances our understanding of the antecedents of multinational expansion, but also provides implications and avenues for future research.

Original languageEnglish
Pages (from-to)961-974
Number of pages14
JournalJournal of International Business Studies
Volume38
Issue number6
DOIs
Publication statusPublished - 2007 Nov 1

Fingerprint

Marketing
Industry
Profitability
Resources
Firm resources
Multinationality
Knowledge-based
Multinationals
Resource-based view of the firm
Profit
Manufacturing companies
Driving force
Organizational slack
Empirical results
Business activity

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

Tseng, Chiung Hui ; Tansuhaj, Patriya ; Hallagan, William ; Mccullough, James. / Effects of firm resources on growth in multinationality. In: Journal of International Business Studies. 2007 ; Vol. 38, No. 6. pp. 961-974.
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Effects of firm resources on growth in multinationality. / Tseng, Chiung Hui; Tansuhaj, Patriya; Hallagan, William; Mccullough, James.

In: Journal of International Business Studies, Vol. 38, No. 6, 01.11.2007, p. 961-974.

Research output: Contribution to journalArticle

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