Internationalisation motives and the multinationality-performance relationship: The case of Polish firms

Objective: The objective of the article is to investigate the moderating role of internationalisation motives on the multinationality-performance relationship of Polish firms. Research Design & Methods: Our article uses panel regression models on a dataset of 97 Polish listed "new" MNEs with foreign activities established in the period of 2006-2013, gathered in a primary study. Findings: We found that Polish firms show an inverted U-curve relationship between multinationality and performance, which is contrary to the predictions resulting from the traditional S-curve analysis. Moreover, we found that political-institutional motives positively moderate the multinationality-performance curve for sales growth, while efficiency-seeking motives have a similar effect on return on assets and return on sales. Finally, competitiveness-related motivations behind internationalisation moderate the inverted U-shaped curve for return on equity, although they are different than expected. Implications & Recommendations: The article addresses the gap of limited consideration for the stage of internationalisation of the firms under study by focusing on newly internationalised firms from a post-transition economy. Secondly, as one of the very few studies, our work follows some recent calls to unbundle the substance of internationalisation by considering the moderating role of internationalisation motives. Contribution & Value Added: This study helps to advance international business literature by testing longitudinally the MP relationship for Polish firms between 2006 and 2013.