CRIS - Current Research Information System
2018
,
Andres Velez-Calle
,
SANCHEZ HENRIQUEZ, FERNANDO GABRIEL
,
Farok Contractor
Purpose
The purpose of this paper is to analyze the relationship between multinationality and firm performance (M-P) in Latin American companies, commonly referred to as multilatinas. The study conceptualizes the depth (intensity) and breadth (geographical scope) of internationalization and examines their effect on financial performance. Although scholars have studied how internationalization in various contexts and industries affects performance, little is known about firms in Latin America.
Design/methodology/approach
The authors conducted an analysis of the effect of the depth and breadth of multilatina internationalization on financial performance by creating a database using information from America Economia, a specialized Chilean magazine that publishes an annual ranking of multilatinas. Additional data came from the Osiris database of Bureau Van Dijk and Compustat. The hypotheses were tested using an autoregressive heteroskedastic model.
Findings
The results show that the extent of the depth and breadth of internationalization affects financial performance. Multilatinas’ depth of internationalization has a curvilinear (U-shaped) impact on performance while breadth has an inverted curvilinear impact on performance.
Research limitations/implications
The theory portion and results expand the literature on firm internationalization and performance by distinguishing between two types of international firm expansion, depth and breadth, and discussing how each contributes to different stages of the three-stage theory of multinationality and performance.
Originality/value
The findings indicate that multilatinas benefit from their regional expansion, but outside Latin America, expansion has a negative effect on financial performance. They also show that firms can implement different types of internationalization strategies in terms of intensity and scope to achieve better performance.
2021
,
Jessica Salmon
,
Salma Zaman
,
Emine Beyza Satoglu
,
SÁNCHEZ HENRÍQUEZ, FERNANDO GABRIEL
,
Andres Velez-Calle
Purpose
This paper examines the role of co-inventor collaboration with China and/or the USA on a country's increase in centrality in global knowledge networks. It also explores the role of specific institutional factors – corruption and intellectual property rights (IPR) protection – on this relationship.
Design/methodology/approach
In the study, co-inventor data from the United States Patent and Trademark Office (USPTO) applications have been used to construct networks of technological knowledge collaboration at the country level over the years 2002–2015. Using eigenvector centrality as the dependent variable, the study uses fixed effect regression analyses on a panel of 171 countries, contributing to recent debates on knowledge networks and international cooperation.
Findings
Building on research in economic development, innovation and social network theory, this research finds that co-patenting with Chinese inventors is positively related to a country's centrality in global knowledge networks and that this relationship is negatively moderated by collaboration with the current most central knowledge network – namely that of the USA – suggesting a substitution effect. It also finds a partial substitution between institutional factors, IPRs protection and transparency, and collaboration with China on a country's knowledge centrality.
Practical implications
Regarding policymakers, the findings can be used to encourage international collaboration for increased access to new sources of knowledge that fosters innovation while keeping a close eye on local institutions, especially emerging economies that want to increase their international knowledge network centrality.
Originality/value
This study creates a unique panel data set and extends the social networks approach in international business literature, focusing on institutional characteristics related to participation in knowledge networks.