Multinationality and firm performance: The moderating role of R&D and marketing capabilities

Researchers in international business have long been interested in understanding the relationship between the multinationality of a firm and its market performance. This article contributes to this research stream by incorporating firm heterogeneity in examining the multinationality-performance relationship. The findings, based on a time series cross-sectional analysis of firms from 12 different industries over a seven-year period, indicate that the impact of multinationality on both financial and operational performance is moderated by firm's R&D and marketing capabilities.