Development and validation of a firm-level vertical and horizontal internationalization metric

Edmund R Thompson, Gerard H Dericks, Felicia Fai

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Abstract

The lack of valid and reliable measures of firm-level vertical and horizontal internationalization is impeding the development and testing of hypothesized relationships between these respective dimensions of internationalization and a range of important MNE characteristics, actions, and effects. Through a series of qualitative and quantitative studies using data collected from senior MNE executives (total N=3,146), we develop and validate a scale to measure both vertical and horizontal firm-level internationalization. Subscales for each type of internationalization prove to be unidimensional, reliable, temporally stable, and to have predictive, cross-cultural, cross-sectoral, and discriminant validity.
Original languageEnglish
Pages (from-to)533-543
Number of pages11
JournalInternational Business Review
Volume28
Issue number3
Early online date10 Feb 2019
DOIs
Publication statusPublished - 1 Jun 2019

Keywords

  • Horizontal internationalization
  • Measurement
  • Scale development
  • Vertical internationalization

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

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