Although the relationship between multinationality and firm performance has attracted attention among the international business researchers, it still remains unconfirmed. This study, therefore, is aimed at clarifying the relationship through refining the measurement of multinationality and examining how the relationship varies with a firm"s degree of product diversification. Based on a sample of 231 Korean manufacturing firms, we find that the structural dimension of multinationality has a U-curved relationship with firm performance while the performance-related dimension of multinationality shows an inverted horizontal S-shaped relationship. The relationship is not moderated by the degree of product diversification. This study concludes with several limitations and suggestions for future studies.
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