The effect of multinationality on firm performance: An examination of Japanese service firms

Why Do Multinational Firms Exist? A Theory Note About The Effect of Multinational Expansion on Performance and Recent Methodological Critiques

“…Some cross-sectional results produce an inverted U-shape, which suggests a sample of considerably internationalized MNEs (enjoying the net benefits of multinationality on the positively sloped left-hand side of the inverted U) as well as overinternationalized firms (representing the negatively sloped righthand side of the inverted U). Other cross-sectional results produce a U-shape, which suggests a sample dominated by newly internationalized companies as well as more mature internationalized firms, as illustrated by Japanese service firms (Endo and Ozaki, 2011). Japan has not been known for great international success of its service firms.…”

“…Other cross-sectional results produce a U-shape, which suggests a sample dominated by newly internationalized companies as well as more mature internationalized firms, as illustrated by Japanese service firms (Endo and Ozaki, 2011). Other cross-sectional results produce a U-shape, which suggests a sample dominated by newly internationalized companies as well as more mature internationalized firms, as illustrated by Japanese service firms (Endo and Ozaki, 2011).…”

“…It is no surprise then to find that their service companies with a low degree of internationalization exhibit (on the lefthand side of a U-curve) a negative slope, because the liabilities of early international expansion out of the culturally unique Japanese home base exceed the benefits, producing a negative effect on performance for early-or less-internationalized firms. However, Endo and Ozaki's (2011) sample also includes more internationalized Japanese service firms which, because they are more internationalized, reap net benefits (exhibited by a positive slope on the righthand side of the U-curve). Finally, this particular study does not support the S-curve paradigm-i.e., there is no third stage where overinternationalized companies again suffer a negative slope.…”

Do Strategic Motives Affect Ownership Mode of Foreign Direct Investments (FDIs) in Emerging African Markets? Evidence from Ghana

“…Duarte and Garcia‐Canal () argue that a firm's foreign experience can contribute to the development of new knowledge and capabilities and, as a result, efficiently reduce the uncertainties and threats and increase awareness of opportunities in different foreign markets. Previous studies (Endo & Ozaki, ; King & Tucci, ; Yung‐Heng & Yann‐Haur, ) suggest that an increase in the organization's international experience tends to lead the organization to use a higher ownership control mode. Ghana is a newly emerging country with a less stable business environment than the developed countries and relatively weak institutions.…”

Multinational Enterprises’ Entry Mode Strategies in Syria and Jordan: The Impact of Ownership Advantages

“…Assets generated on the MNE's degree of multinationality, such as the size of the firm (i.e., economics of scale/scope), international experience, and financial resources, have played an important role in the decision of MNEs to locate their activities and determine their entry mode strategies (Chiao et al, ; Dunning, ; Galan & Gonzalez‐Benito, ; Maekelburger et al, ). As an MNE's degree of multinationality increases, more advantages will be gained (Endo & Ozaki, ), resulting in a stronger competitive position. Transaction costs theory suggests that an MNE will select a higher entry mode strategy if it entails lower transaction costs when considering the potential costs and benefits associated with this selection.…”