Internationalization, resource allocation and firm performance

In this paper, we examine the effects of internationalization and resource allocation on firm performance We argue that resource allocation plays a pivotal role in determining a firm's international growth Using a sample of Taiwanese firms, we find an optimal level of internationalization, in terms of the number of countries, as well as the level of investment towards value appropriation that is necessary to start creating a positive impact on firm performance As a result of our study, we propose that Taiwanese firms would likely benefit by shifting their focus of resource allocation from R&D to marketing. (C) 2009 Elsevier Inc All rights ieserved