Internationalization and Firm Performance for International Growth: Empirical Evidence from Pump & Motor Manufacturers of Coimbatore

Abstract

This article proposes an extension of the internationalization and firm performance relationship to include the firm’s specific advantages and performance indicators. Certainly, the suggested framework is not holistic since various factors, both internal and external, affect the outcome of internationalization. As this article provides a theoretical advancement in international growth and will stimulate for further investigation of how internationalization affects a firm’s organizational behavior towards performance. The analysis in the paper is based upon data gathered through personal interviews and mail surveys had with the executives of 143 Coimbatore Pump and motor manufacturers. The study reveals that there exists significant association between performance variables and growth. The overall international growth can be achieved by increasing firm specific advantages like, innovation, adaptability, employment of skilled man power, setting of research and development centers etc for internationalization. Also it is found that growth is connected with performance indicators like increased sales volume, profit, asset value and enterprise value. All these variables are analysed by using statistical tools of finding mean score and to find relationship among the variables for knowing the firm growth.