Title: Does internationalisation give firms a second life? Evidence from turnaround attempts of declining firms during performance decline

Authors: Xin Liang; Rongji Zhou; Jugang Yan; Sibin Wu

Addresses: Labovitz School of Business & Economics, University of Minnesota Duluth, 412 Library Drive, Duluth, MN, 55812, USA ' Hengyang Normal University, Hengyang, Hunan, China ' Xi'an University of Posts & Telecommunications, Xi'an, Shaanxi, China ' Department of Management, Robert C. Vackar College of Business & Entrepreneurship, University of Texas Rio Grande Valley, 1201 W University Dr, Edinburg, TX 78541, USA

Abstract: Based upon a sample of 97 US public firms that attempted turnaround from performance decline, we tested the influence of internationalisation on the outcomes of turnaround attempts of firms. We found that internationalised firms had a better chance to recover from performance decline than their domestic counterparts. In addition, the greater the degree of internationalisation, the better chance a firm would recover from performance drop. The chances of recovery do not demonstrate a tendency to decrease even as a firm moves into very high stages of internationalisation.

Keywords: turnaround; internationalisation operation; strategic option.

DOI: 10.1504/EJIM.2023.131369

European Journal of International Management, 2023 Vol.20 No.2, pp.216 - 237

Received: 19 Apr 2018
Accepted: 26 Mar 2019
Published online: 09 Jun 2023 *

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