A Multilevel Examination of the Drivers of Firm Multinationality

Significant research has been devoted to studying the factors that affect firm multinationality. In this study, the authors organize the vast multinationality literature by levels of analysis using a multilevel framework based on the interaction paradigm and conduct a meta-analysis that aggregates the empirical findings from 154 independent samples reported in 145 studies. The cumulative evidence provides strong support for the upper echelons theory that emphasizes the central importance of executives’ characteristics as major determinants of firm multinationality. Moreover, the results indicate that the accumulation of the international experience embedded in human and relational capital is the most significant firm-level factor that affects firm multinationality. The meta-analytic results also reveal that the measurement and sample characteristics of original studies explain the inconsistent findings pertaining to the effects of firm size, firm age, and top management team size on multinationality. On the basis of the meta-analytic findings, several directions for future research are provided.

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