This paper examines the relationship between corporate internal resources, internationalization, and firm performance. This paper tests whether internal resources influence the degree of firm's internationalization and internationalization's impact on...
This paper examines the relationship between corporate internal resources, internationalization, and firm performance. This paper tests whether internal resources influence the degree of firm's internationalization and internationalization's impact on firm performance in a sample of korean firms between 2003 and 2005. I include marketing resource, technical resource, financial resource, and administrative heritage as corporate's internal resources and expect these are drivers of internationalization of firm.
I perform the path analysis using the recursive model including internationalization and performance of firm as dependent variables. I find that the relationship between debt ratio as a financial resource and internationalization is positive, but that organization slack as a financial resource is negatively associated with internationalization of firm. Results also show that a positive relationship between administrative heritage and internationalization and that increasing levels of internationalization bring significant performance benefits up.
I expect that this research has added to our understanding of internalization theory by discussing its roots in the resource-based view. By addressing the complementary perspectives, an empirical step has been taken to add to our knowledge of the drivers of internationalization of firm and the impact of internationalization on firm performance.