Exploring Internationalisation Effects on Firm Performance: Quantitative Empirical Study among German, Swiss and Austrian Listed Companies

Wehrman, Carsten D. (2018) Exploring Internationalisation Effects on Firm Performance: Quantitative Empirical Study among German, Swiss and Austrian Listed Companies. DBA thesis, University of Gloucestershire.

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Abstract

Purpose – The purpose of this thesis is to explore the relevance of internationalization in the context of other factors of firm growth and to explore additional effects of internationalization in the context of M&A, R&D, intangible assets and capital structure neglected in prior firm growth and internationalization research and based exclusively on financial data and financial analysis research. Consequently, this research combines several distinct theoretical lenses. Design/methodology/approach – This thesis uses an explanatory approach based on the financial data analysis applying the multiple regression analysis and tests for differences (t-Test) to (1) determine the differences between companies with a high level of internationalization and companies with a lower level, (2) explore causal effects on firm performance among individual groups such as high-growth companies, the research-intensive groups and other groups formed by firm performance determinants mentioned in prior firm growth research. Findings – Internationalization was not found as an explanatory variable for quantitative and qualitative growth in the exploratory analysis of both the total sample and the highgrowth group. Therefore, internationalization cannot be considered in general as a highgrowth strategy. Instead, the ‘average MNE’ is slow-growing in terms of quantitative and qualitative growth and struggling year by year to keep the operating margin above the break-even point. It is concluded, that MNEs are more pulled into internationalization instead of pushing this process. However, at a certain firm size level, the only way to grow further is to internationalize but at the cost of profitability. Originality/value – This thesis’ approach is explorative. Many variables included in the variable set are not included in prior empirical studies. The study is based on structured numerical data which are highly comparable due to international accounting standards required in the home countries of the sample’s companies. Furthermore, the criticism on prior internationalization and firm growth research is considered to secure the validity of this study. The results partially support empirically–the total sample is equal to 54% of the German GDP (2013)–and allow to extend the existing state of research concerning different effects of internationalization in the context of firm growth. Additionally, the empirical results are used to develop general models of quantitative and qualitative growth and high-growth. Based on the empirical findings form analysing 569 listed companies, strategic management recommendations for growth and internationalization are developed beyond the existing standard models integrating research areas. 3 Keywords – internationalization, firm growth, resource-based view, firm performance, knowledge-based view, theory of the firm, multinational enterprise (MNE) more on the qualitative aspects in terms of internationalisation process structure, applied strategies, internationalisation management and other topics.

Item Type: Thesis (DBA)
Uncontrolled Keywords: Internationalization; Firm growth; Resource-based view; Firm performance; Knowledge-based view; Theory of the firm; Multinational enterprise (MNE); Internationalisation process structure, qualitative aspects; Applied strategies; Internationalisation management.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD2340.8 Small and Medium-sized businesses, artisans, handcrafts, trades
H Social Sciences > HF Commerce > HF5001 Business
Divisions: Schools and Research Institutes > School of Business and Technology > Business & Enterprise Management
Depositing User: Susan Turner
Date Deposited: 19 Mar 2019 13:09
Last Modified: 19 Mar 2019 13:09
URI: http://eprints.glos.ac.uk/id/eprint/6554

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