Two dimensions of internationalization. An empirical analysis of the internationalization of firms

Citation
A. Hassel et al., Two dimensions of internationalization. An empirical analysis of the internationalization of firms, KOLNER Z SO, 52(3), 2000, pp. 500
Citations number
45
Language
TEDESCO
art.tipo
Article
Categorie Soggetti
Psycology
Journal title
KOLNER ZEITSCHRIFT FUR SOZIOLOGIE UND SOZIALPSYCHOLOGIE
ISSN journal
0023-2653 → ACNP
Volume
52
Issue
3
Year of publication
2000
Database
ISI
SICI code
0023-2653(200009)52:3<500:TDOIAE>2.0.ZU;2-V
Abstract
In order to analyze the impact of internationalization on national institut ions, methods of measuring the degree of internationalization are required. The article presents a method for measuring the degree of internationaliza tion of firms. We assume that the internationalization of firms has several dimensions which cannot be combined into one index, and therefore, have to be distinguished. The first dimension refers to the production activities of firms abroad; the second is measured by the proximity of the firm to int ernational capital. Using a group of the 100 largest German companies both dimensions are empirically tested. Factor analysis supports the assumption that both dimensions, the product-oriented and the financial dimension, do not co-vary and can be separated. Using the measurements we can rank firms into higher and lower degrees of internationalization.