MULTINATIONALITY AND FIRM GROWTH

Multinationality influences relative competitive advantages, and hence firm growth. Thus, the relative extent of multinationality of firms, compared to competitors within their respective industries, may affect their rates of growth. The advantages that derive from multinationali ty depend upon the scope for internationally integrated strategies, wh ich varies between industries. Previous statistical studies of multina tionality and growth have failed to take proper account of these consi derations, and therefore they have not identified the benefits from mu ltinationality described in the theoretical and case study literature. These benefits are clarified using statistical evidence on the world' s largest firms in 1972 - 82.