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The current study contributes to a better
understanding of how firm performance varies in
time, with a particular emphasis on measuring the
influence of the home-country location to the
dispersion of firm profitability around the global
norm. This research focuses on the theme of
inter-firm differential performance and measures how
a structural element of the international market,
specifically the national locality of corporate
headquarters, influences the distribution of rates of
return among existing firms. Researchers in strategic
management have been increasingly interested on how
different national environments influence the
variance of firm performance. Although many empirical
studies identified and measured determinants of firm
performance within the context of a single national
economy, relatively few considered determinants of
firm performance across countries.The strategy field
still has not answered conclusively how home-country
of firms affects firm performance in the long term.
Based on modern econometric methodologies and a large
cross-country panel data, the current research points
to a consistent process of industrial clustering
occurring in the global economy.
understanding of how firm performance varies in
time, with a particular emphasis on measuring the
influence of the home-country location to the
dispersion of firm profitability around the global
norm. This research focuses on the theme of
inter-firm differential performance and measures how
a structural element of the international market,
specifically the national locality of corporate
headquarters, influences the distribution of rates of
return among existing firms. Researchers in strategic
management have been increasingly interested on how
different national environments influence the
variance of firm performance. Although many empirical
studies identified and measured determinants of firm
performance within the context of a single national
economy, relatively few considered determinants of
firm performance across countries.The strategy field
still has not answered conclusively how home-country
of firms affects firm performance in the long term.
Based on modern econometric methodologies and a large
cross-country panel data, the current research points
to a consistent process of industrial clustering
occurring in the global economy.