Li, Y., Wu, C. C., Liu, Y. C., and Liu, H. S. 2018. Internationalization and Performance: An Application of Quantile Regressions. NTU Management Review, 28 (2): 97-128. https://doi.org/10.6226/NTUMR.201808_28(2).0004
Yang Li, Professor and Director, Institute of Business and Management, National University of Kaohsiung
Ching-Chang Wu, Assistant Professor, Department of International Business, Chinese Culture University
Yi-Chun Liu, PhD Student, Department of International Business, National Taiwan University
Hua-Shun Liu, Investment Advisor, Wealth Management Department, Standard Chartered Bank
Abstract
As previous studies have yet obtained a consistent relationship between internationalization and performance, we propose that the contributions from
internationalization on performance may vary with the scale of firms. This study employs quantile regression to analyze the influence of internationalization on the performance of Taiwan’s manufacturing firms. Empirical results indicate that the relationship between internationalization and performance is non-linear. First, the larger the firm size, the higher the marginal effects are for the depth of internationalization. Second, the contribution of international experience on small firms is significantly higher than that on large firms. Third, the breadth of internationalization is only positively related to the performance of large firms, but is not significant to medium firms, and is even negative upon small firms.
Keywords
Internationalizationperformancefirm sizequantile regression