Dissertation/Thesis Abstract

Organizational Slack, International Expansion, and Firm Profitability
by Liu, Anran, M.Sc., Singapore Management University (Singapore), 2011, 45; 1494097
Abstract (Summary)

International expansion is a viable growth strategy for firms operating in an increasingly competitive business environment. Understanding the relationship between international expansion and firm performance has been a significant concern for theory development in the strategy and international business literature. The extant literature, however, has paid insufficient attention to the tradeoff between firm growth and profitability that may imply the existence of an optimal rate of growth. Drawing from the Penrosian perspective that emphasizes the role of resources in firm growth, this study investigates whether and how firm slack resources affect the tradeoff between international expansion and profitability. Specifically, this study argues that there is an inverted-U shaped curvilinear relationship between international expansion and firm profitability, and uses resource-based view and agency theories to hypothesize how human and financial slacks affect the relationship.

Indexing (document details)
Advisor: Choi, Young Rok
School: Singapore Management University (Singapore)
Department: Lee Kong Chian School of Business
School Location: Republic of Singapore
Source: MAI 49/06M, Masters Abstracts International
Subjects: Management
Keywords: International expansion, Organizational slack, Profitability
Publication Number: 1494097
ISBN: 978-1-124-67994-5
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