Is Foreign Expansion an Effective Way to Boost Sales and Profits?

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Krystian Barłożewski

Abstrakt

This paper posits, based on the data set covering an 8‑year period between 2006 and 2013, that Polish firms show an inverted U-curve relationship between multinationality and performance. At the beginning of internationalization a short stage of rising performance might be observed, however, quickly rising costs stemming from the liability of newness and foreignness lead to a fall in performance. This is not only contrary to the predictions resulting from the traditional S-curve analysis but also indicates that executives’ high expectations regarding foreign expansion might be a sign of a “global illusion”.

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Barłożewski, K. (2019). Is Foreign Expansion an Effective Way to Boost Sales and Profits?. Journal of Management and Financial Sciences, (32), 71–82. https://doi.org/10.33119/JMFS.2018.32.5
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