Multinationality and performance: A synthetic review and research agenda

This paper provides a reflective and synthetic review of the literature on the relationship between a firm’s multinationality and performance. It revisits the main theories and demonstrates a gradual shift from the traditionally equilibrium-oriented theorization to the recent dynamics-oriented perspectives. It also examines the current status of empirical inquiry and identifies some important voids. The following areas are highlighted for further conceptual development and empirical investigation: (1) conceptual refinement and measurement of multinationality as a construct; (2) cost-efficiency implications of multinationality; (3) impact of internationalization motivations on both multinationality and performance; (4) two-way relationships between multinationality and performance; and (5) moderating roles of important external and internal contextual factors.