Buckley, PJ orcid.org/0000-0002-0450-5589 and Tian, X (2017) Transnationality and Financial Performance in the Era of the Global Factory. Management International Review, 57 (4). pp. 501-528. ISSN 0938-8249
Abstract
Drawing on the core notions of knowledge augmentation and rational choice in internalization theory, the paper develops a theoretical framework to examine the relationship between transnationality and financial performance in the era of the global factory, and tests hypotheses against recent experience of leading transnational enterprises. The paper rejects a direct relationship between transnationality and financial performance, and supports a mediation model in which knowledge-based assets mediate the relationship between transnationality and financial performance conditional on R&D intensity. In making decisions on the transnationality of a firm, managers should not focus on whether it helps the firm achieve direct financial benefits because these are quickly offset by the costs in a competitive environment. Instead, they should focus on whether it helps the firm enhance knowledge-based assets and, through it, financial gains that can be long-lasting, and whether it is supported by R&D to augment such assets.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | (c) 2016, Springer-Verlag Berlin Heidelberg. This is an author produced version of a paper published in Management International Review. Uploaded in accordance with the publisher's self-archiving policy. The final publication is available at Springer via https://doi.org/10.1007/s11575-016-0306-7 |
Keywords: | internalization theory; transnationality; performance; global factory |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 08 Sep 2016 14:09 |
Last Modified: | 03 Nov 2017 02:29 |
Published Version: | https://doi.org/10.1007/s11575-016-0306-7 |
Status: | Published |
Publisher: | Springer Verlag |
Identification Number: | 10.1007/s11575-016-0306-7 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:104479 |