The internationalization-performance relationship: A review of the literature

Abstract

This paper aims to review previous research on the relationship between internationalization and performance, and propose avenues for future research. To do so, we conducted a narrative literature review based on 40 articles selected from scientific databases. We identified the theoretical foundations, including portfolio diversification theory, resource-based theory, and transaction costs theory, as well as the general models of the relationship: positive and linear, negative and linear, U-shaped, inverted U-shaped, S-shaped, and inverted S-shaped.

The analyses of this review showed contradictory results. This justified the need to discuss possible frameworks for understanding these findings. Based on this, several avenues for future studies are proposed. We recommend a clarification and empirical understanding of the concepts of internationalization and performance, an extension of studies to qualitative methodological perspectives, and a focus on an evolutionary perspective of the relationship, taking into account organizational learning.

Keywords: Internationalization, performance, narrative literature review, avenues for future research.

JEL Classification: M 25, M 16.

Paper Type: Theoretical research.