Multinationality and Performance Persistence

Existing research has studied multinationality’s effect on performance (the “M-P” relationship) over decades. There is an important distinction, however, between firms’ ability to achieve a statically measured level of performance and firms’ ability to sustain high performance levels over multiple years. Few scholars have looked at how MNEs, in particular, can make their performance sustainable. In this study, we examine the multinational-performance persistence (“M-PP”) relationship and propose the importance of performance persistence regarding capturing business competitive advantage. In addition, we attempt to introduce moderating effects in this relationship, using firm-level absorptive capacity and home country institutions. Firm that appeared on the Global 500 list between 2005 and 2015 are examined in this study.