Globalization effects and firm performance

Abstract

This paper advances prior knowledge on globalization and business by empirically investigating how this phenomenon affects firm performance. Building on environment-organization literature, this study explores globalization-performance relationships. The results of the analyses provide considerable support for literature arguing that globalization acts as a two-edged sword, one that can be beneficial and detrimental to business. Therefore, innovative and effective strategies should be designed and implemented to enable firms to capitalize on global market opportunities while carefully managing its inherent threats in order to attain long-term victory in today’s globalized business environment.