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

Researchers in international business have long been interested in understanding the relationship between the multinationality of a firm and its market performance. In this research, we contribute to this research stream by incorporating firm heterogeneity in examining the multnationality-performance relationship. The findings, based on a time series cross-sectional analyses of firms from 12 different industries over the seven-year period, indicate that the impact of multinationality on firm performance is moderated both by the marketing intensity and the research and development intensity. The findings highlight the need for multinational corporations to invest in both R&D and marketing activities to leverage their presence in multiple markets.