Does Globalization Affect Multinational Corporation Performance?

Abstract

The global economy is a reality for nearly all industries, companies, and workers in every nation. While multinational corporations (MNCs) from developed countries have long pursued internationalization, firms from developing countries have also become global giants in the last 25 years. This paper empirically evaluates the impact of globalization on firm performance for two samples of firms: 50 MNCs from developed countries and 50 MNCs from developing countries. The results show that globalization does impact firm performance in the expected direction for both groups. Implications of the findings and directions for future research are given.

Key Words:

• Developing countries
• developed countries
• firm performance
• multinational corporations