A Study of the Relationship between Internationalization and Firm Performance A Case-study of Firms in the Service Sector in Indonesia

Abstract

This paper is to investigate the relationship between the degree of internationalization and firm performance in the service sector in Indonesia. Based on a dataset collected by the World Bank for 491 firms in the service sector in Indonesia, the empirical findings indicate that there is an inverted U-shaped relationship between the degree of internationalization and firm performance in the service sector in Indonesia. The implication of this research is not only a benchmark that helps policy makers to issue better policy solutions in supporting firms in the context of international economic integration but helps firms to devise  suitable growth strategies.

Keywords

Internationalization, firm performance, services, Indonesia

References

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