Abstract
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This paper reviews the theoretical rationale that has been advanced so far for a positive relationship between multinationality (i.e. international diversification) and performance.
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We show that transaction cost/internalization theory implies no direct and general relationship between international diversification and performance.
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Hennart, JF. The theoretical rationale for a multinationality-performance relationship. MANAGE. INT. REV. 47, 423–452 (2007). https://doi.org/10.1007/s11575-007-0023-3
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DOI: https://doi.org/10.1007/s11575-007-0023-3