Internationalization and firm performance

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A substantial body of strategy and international business literature has explored the link between internationalization (regional diversification) and firm performance over recent decades. However, the current research on this relationship is heterogeneous and inconclusive. Conceptually, higher levels of internationalization are expected to positively influence firm performance through economies of scale, market power, and risk reduction. Conversely, firms expanding internationally face significant negative impacts primarily due to liabilities of foreignness. Consequently, extensive empirical studies yield mixed and contradictory results regarding the internationalization-performance relationship. In this context, Mario Krist identifies three key research objectives: first, he investigates whether and why a relationship exists between internationalization and firm performance; second, he identifies the intangible resources that serve as critical success factors in this relationship; and third, he examines how these resources function within the internationalization process and their ultimate effects on firm performance, as well as how the characteristics of the internationalization process influence this relationship. Krist's focus on this topic is highly relevant, as internationalization is central to corporate and business strategy, and his research objectives are well-grounded in a thorough understanding of the current rese