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Determinants of the Internationalization-Performance Relationship: an Empirical Examination of the Influence of Organizational and Contextual Variables

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Determinants of the Internationalization-Performance Relationship: an Empirical Examination of the Influence of Organizational and Contextual Variables Universität Augsburg Wirtschaftswissenschaftliche Fakultät Determinants of the Internationalization-Performance Relationship: An Empirical Examination of the Influence of Organizational and Contextual Variables Dissertation zur Erlangung des akademischen Grades eines Doktors der Wirtschaftswissenschaften (Dr.rer.pol.) an der Universität Augsburg vorgelegt von Sebastian Sieler Erstgutachter: Prof. Dr. Dres. h.c. Adolf G. Coenenberg Zweitgutachter: Prof. Dr. Wolfgang Schultze Vorsitzender der mündlichen Prüfung: Prof. Dr. Otto Opitz Tag der mündlichen Prüfung: 24. Juli 2008 CURRICULUM VITAE Persönliche Daten Name: Sebastian Sieler Geboren am: 06.07.1979 in Karlsruhe Nationalität: deutsch Familienstand: ledig Akademischer Werdegang und Schulbildung Juni 1999 Abitur am Max-Planck Gymnasium Karlsruhe Sep. 1999 - Mai 2003 International Partnership of Business Schools (IPBS), deutsch-amerikanischer Doppeldiplom-Studiengang der ESB Reutlingen und der Indiana University Bloomington, USA Sep. 1999 - Jun. 2001 European School of Business (ESB), FH Reutlingen Aug. 2001- Dez. 2001 Red McCombs School of Business, University of Texas, Austin, US Jan. 2002 - Mai 2003 Kelley School of Business, Indiana University, Bloomington, USA Abschluss: Dipl. Betriebswirt (FH); B.Sc. in Business Juli 2008 Promotion an der wirtschaftswissenschaftlichen Fakultät der Universität Augsburg Beruflicher Werdegang Jul. 2000 - Sep. 2000 Merrill Lynch International Bank Ltd., Frankfurt Praktikum im Bereich private Vermögensverwaltung und Portfolio Management der International Private Client Group Okt. 2000 - Feb. 2001 DaimlerChrysler AG, Stuttgart Praktikum im Produktmanagement der A-Klasse Jun. 2002 - Aug. 2002 Deloitte & Touche, München Praktikum in den Bereichen „Transaction Services“ und „M&A“ der Corporate Finance Group Sep. 2002 - Dez. 2002 McKinsey&Company Inc., München Praktikum innerhalb der Insurance Practice Seit Sep. 2003 Consultant bei McKinsey & Company Inc., München - Mitglied der deutschen und europäischen Pharma/Healthcare Practice Preise und Auszeichnungen Seit April 2002 Mitglied der Golden Key International Honour Society Seit April 2003 Mitglied in der Beta Gamma Sigma business honor society Publikationen Kapitelbeitrag Salfeld, R./ Hehner, S./ Wichels, R.: Modernes Krankenhausmanagement – Konzepte und Lösungen, Springer, Berlin Heidelberg New York, 2008. Table of Contents V TABLE OF CONTENTS LIST OF FIGURES.............................................................................................................IX LIST OF TABLES ..............................................................................................................XI LIST OF EQUATIONS.................................................................................................... XIII LIST OF ABBREVIATIONS ........................................................................................... XV 1 INTRODUCTION ............................................................................................................ 1 2 THEORETICAL FOUNDATIONS................................................................................ 5 2.1 Theories on the Benefits of Corporate Internationalization ............................................ 5 2.1.1 Economic Theories of Internationalization.............................................................. 5 2.1.1.1 Theory of Comparative Costs ........................................................................... 5 2.1.1.2 Theories of Foreign Direct Investment............................................................. 9 2.1.1.2.1 The International Product Life Cycle Theory............................................ 9 2.1.1.2.2 Theory of Monopolistic Advantages ....................................................... 12 2.1.1.2.3 Internalization Theory ............................................................................. 15 2.1.1.3 The Eclectic Theory of International Production............................................ 18 2.1.1.4 Portfolio Diversification Theory..................................................................... 20 2.1.2. Organizational Perspectives of Corporate Internalization .................................... 23 2.1.2.1 Resource Transmission Theory ...................................................................... 24 2.1.2.2 The Resource-Based View of the Firm and Organizational Learning............ 26 2.1.2.3 Theory of Operational Flexibility................................................................... 30 2.2 Theories on the Costs of Corporate Internationalization............................................... 32 2.2.1 Costs of Internationalization Arising from the External Business Environment... 32 2.2.2 Costs of Internationalization Arising from the Intra-Company Environment ....... 35 2.3 Summary of the Benefits and Costs of Corporate Internationalization......................... 38 3 THE INTERNATIONALIZATION-PERFORMANCE RELATIONSHIP............. 43 3.1 Outline of Empirical Studies on the Internationalization-Performance Relationship ... 43 3.2 Survey of Past Empirical Results .................................................................................. 46 3.3 Critique and Object of Investigation ............................................................................. 51 4 DEVELOPMENT OF HYPOTHESES ........................................................................ 55 4.1 Company-Level Variables Affecting the Internationalization-Performance Relationship .................................................................................................................. 55 4.1.1 Development of International Strategies................................................................ 55 4.1.2 International Strategy Implementation................................................................... 59 VI Table of Contents 4.1.3 The Transnational Concept .................................................................................... 63 4.1.4 Hypotheses on Organizational and Managerial Variables ..................................... 65 4.1.4.1 Configuration of Value Chain Activities ........................................................ 66 4.1.4.2 Intra-Company Knowledge Flows.................................................................. 68 4.1.4.3 Social Control Mechanisms ............................................................................ 70 4.1.4.4 Subsidiary Autonomy ..................................................................................... 75 4.1.4.5 Organizational Slack....................................................................................... 77 4.2 Contextual Variables Affecting the Internationalization-Performance Relationship.... 81 4.2.1 Industry Membership ............................................................................................. 82 4.2.2 Geographic Origin.................................................................................................. 85 4.3 Overview of Hypotheses ............................................................................................... 91 5 CONCEPTUALIZATION OF MEASURES AND DATA COLLECTION............. 93 5.1 Definition and Measurement of Variables..................................................................... 93 5.1.1 Dependent (Endogenous) Variables....................................................................... 94 5.1.2 Independent (Exogenous) Variables ...................................................................... 99 5.1.3 Moderating Variables........................................................................................... 104 5.1.4. Control Variables ................................................................................................ 113 5.2 Data Collection............................................................................................................ 117 5.2.1 Research Site........................................................................................................ 117 5.2.2 Sampling Process ................................................................................................. 122 5.2.3 Survey .................................................................................................................. 123 5.2.3.1 Survey Design............................................................................................... 123 5.2.3.2 Survey Process.............................................................................................. 126 5.2.3.3 Survey Response Analysis............................................................................ 128 6 VALIDATION AND OPERATIONALIZATION OF CONSTRUCTS ................. 135 6.1 Conceptual Differences between Reflective and Formative Constructs ..................... 135 6.1.1 Procedures Used for Assessing the Reliability and Validity of Reflective Constructs ............................................................................................................. 140 6.1.2 Procedures Used for Assessing the Reliability and Validity of Formative Constructs ............................................................................................................. 144 6.2 Specification of Constructs.......................................................................................... 148 6.3 Validation and Operationalization of Multi-Item Constructs Used in the Study ........ 150 6.3.1 Validation and Operationalization of Reflective Constructs ............................... 150 6.3.2 Validation and Operationalization
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