Internationalization and performance: The moderating effects of organizational learning

By proposing a conceptual outline for a general model that explains the internationalization-performance link, we test the moderating effects of organizational learning on the relationship between internationalization and performance empirically. Integrating two distinct literature streams from the organizational learning perspective and the resource-based view, we present an integrated, multidimensional framework for analyzing multinational enterprises' (MNEs') resources, internationalization, and organizational learning, as well as their associated impact on firm performance. Specifically, using a sample of 110 American MNEs, we find that while certain MNE resources motivate and precede internationalization, social and market learning (whereas technological learning does not) moderates the relationship between internationalization and performance. These findings extend prior research by establishing the importance of the relationships among MNE resources, internationalization, organizational learning, and firm performance. © 2006 Elsevier Ltd. All rights reserved.