A Study of the Relationship between Internationalization and Firm Performance A Case-study of Firms in the Service Sector in Indonesia
The Journal of Accounting and Management
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Title |
A Study of the Relationship between Internationalization and Firm Performance A Case-study of Firms in the Service Sector in Indonesia
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Creator |
Tu, Phan Anh
Uyen, Tran Thi Thu |
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Description |
This paper is to investigate the relationship between the degree of internationalization and firm performance in the service sector in Indonesia. Based on a dataset collected by the World Bank for 491 firms in the service sector in Indonesia, the empirical findings indicate that there is an inverted U-shaped relationship between the degree of internationalization and firm performance in the service sector in Indonesia. The implication of this research is not only a benchmark that helps policy makers to issue better policy solutions in supporting firms in the context of international economic integration but helps firms to devise suitable growth strategies. Keywords Internationalization, firm performance, services, Indonesia References [1] Glaum, M. & Oesterl, M.J., “Forty years of research on internationalization and firm performance: more questions than answers?”, Management International Review, 47 (2007), 307-317.[2] Contractor, F.J., “Why do multinational firms exist? A theory note about the effect of multinational expansion on performance and recent methodological critiques”, Global Strategy Journal, 2 (2012), 318-331.[3] Johanson, J., & Vahlne, J. E., “The internationalization process of the firm - A model of knowledge development and increasing foreign market commitments”, Journal of International Business Studies, 8 (1977) 1, 23-32.[4] Buckley, P.J., “The limits of explanation: Testing the internationalization theory”, Journal of International Business Study, 19 (1988) 2, 181-194.[5] Caves, R.E., Multinational enterprises and economic analysis, Cambridge: Harvard University Press, 1996.[6] Grant, R.M., “Multinationality and performance among British manufacturing firms”, Journal of International Business Study, 18 (1987) 1, 79-89.[7] Geringer, J.M., Tallman, S., & Olsen, D.M., “Product and international diversification among Japanese multinationals firms”, Strategic Management Journal, 21 (2000), 51-80.[8] Denis, D.J., Denis, D.K. & Yost, K., “Global diversifi cation, industrial diversifi cation, and firm value”, The Journal of Finance, 5 (2002), 1951-1979.[9] Sullivan, D, “Measuring the degree of internationalization of a firm”, Journal of International Business Studies, 25 (1994), 325-342.[10] Hitt, Michael A., Robert E. Hoskisson, and Hicheon Kim., “International diversification: Effects on innovation and firm performance in product-diversified firms”, Academy of Management Journal, 40 (1997) 4, 767-798.[11] Kogut, B., “Designing global strategy: Profiting from operational flexibility”, Sloan Management Review, 26 (1985), 27-28.[12] Gomes, L.K & Ramaswamy, K., “An emprical examination of the firm of the relationship between multinationality and performance”, Journal of International Business Study, 30 (1999) 1, 173-188.[13] Hair, J. F., W. C. Black, and B. J. Babin. Anderson. RE, Tatham, RL., Multivariate Data Analysis, Pearson New International Edition, 2006.[14] Tsai, H. T., “Moderators on international diversification of advanced emerging market firms”, Journal of Business Research, 67 (2014) 6, 1243-1248.[15] Ruzzier, “On the relationship between firm size, resources, ageatentry and internationalization: The case of Slovenian SMEs”, Journal of Business Economics and Management, 2012, 52-73.[16] Kotabe, M. Srinivasan, S.S. & Auklakh, P.S., “Multinationality and firm performance: The moderating of R&D and marketing capabilities”, Journal of International Business Study, 30 (2002) 1, 70-98.[17] Felson, M. & Gottfredson, M., “Social indicators of adolecent activities near peer and parents”, Journal of Marriage and the Family, 46 (1984), 709-714.[18] Phan Anh Tú, “Doanh nghiệp, bối cảnh, hối lộ: Bằng chứng các doanh nghiệp tư nhân ở đồng bằng sông Cửu Long - Việt Nam”, Kỷ yếu khoa học 2012, 2012, 56-59.[19] Svensson, J., “Eight questions about corruption?”, Journals of Economics Perspectives, 19 (2005) 3, 19-42.[20] Lê Khương Ninh, “Chi phí bôi trơn và đầu tư của doanh nghiệp ngoài quốc doanh của đồng bằng sông Cửu Long”, Tạp chí Nghiên cứu Kinh tế, 358 (2008), 68-76.[21] Jane, W.L & Paul, W.B., “Internationlization diversification and firm performance: The S curve hypothesis”, Academy of Management Journal, 47 (2004) 4, 598-609. [22] Contractor, F. J., Kundu, S. K., & Hsu, C. C., “A three-stage theory of international expansion: The link between multinationality và performance in the servicesector”, Journal of International Business Studies, 34 (2003) 1, 5-18.[23] World Bank national accounts data, available at: http://data.worldbank.org/indicator/NV.SRV.TETC.ZS, 2016 (accessed 15 March 2017).[24] World Bank, “Indonesia Country Report”, available at: http://www.worldbank.org/en/country/indonesia>, 2015 (accessed 10 October 2016). Abstract: The aim of this paper is to investigate the relationship between the degree of internationalization and firm performance in service sector in Indonesia. Based on a dataset collected by World Bank for 491 firms in service sector in Indonesia, the empirical findings indicate that there is an inverted U-shaped relationship between the degree of internationalization and firm performance in service sector in Indonesia. The implication of this research is not only a benchmark that provides policy makers to issue better policy solutions in supporting firms in the context of international economic integration but helping firms devising suitable growth strategies. |
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Publisher |
Vietnam National University, Hanoi
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Date |
2017-03-15
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
https://js.vnu.edu.vn/EAB/article/view/4045
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Source |
VNU Journal of Science: Economics and Business; Vol 33 No 1
Chuyên san Kinh tế và Kinh doanh; Vol 33 No 1 2588-1108 2615-9287 |
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Language |
eng
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Relation |
https://js.vnu.edu.vn/EAB/article/view/4045/3798
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Rights |
Copyright (c) 2017 VNU Journal of Science: Economics and Business
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