RIMS: A New Approach to Measuring Firm Internationalization Victor B. Marshall, Lance E. Brouthers, and Dawn L. Keig
Journal of International Business Studies Vol. 51, Issue 5 (March) 2020, pp. 1133–1141
Overview
Empirical research that tests hypotheses regarding the drivers and/or consequences of firm internationalization needs a valid measure. This paper develops a new measure: the ratio of international market shares (RIMS). It measures to what degree a firm conforms to the theoretically grounded characteristics of a maximally global firm. We compare RIMS theoretically and empirically to three widely used measures of firm internationalization: foreign sales to total sales (FSTS), international diversification, and international scope. RIMS is clearly demonstrated superior in capturing both the breadth and depth of a firm’s internationalization and in the ease with which it can be calculated and interpreted.
4 | Journal Publications - Financial Times Top 50 Journals
Made with FlippingBook - Online catalogs