Multinationality and performance: A synthetic review and research agenda

This paper provides a reflective and synthetic review of the literature on the relationship between a firm's multinationality and performance. It revisits the main theories and demonstrates a gradual shift from the traditionally equilibrium‐oriented theorization to the recent dynamics‐oriented perspectives. It also examines the current status of empirical inquiry and identifies some important voids. The following areas are highlighted for further conceptual development and empirical investigation: (1) conceptual refinement and measurement of multinationality as a construct; (2) cost‐efficiency implications of multinationality; (3) impact of internationalization motivations on both multinationality and performance; (4) two‐way relationships between multinationality and performance; and (5) moderating roles of important external and internal contextual factors.