The purpose of this paper is to explore the largely marginalized role of distance or “space” in multinationality and performance (MP) research. It argues that scholars should adopt a more fine-grained, or relativistic approach when studying the link between MP and that conceptualizing multinationality as space may facilitate this.
By treating space as though it is liability forming, the paper examines frequently contentious research issues in domain of MP research such as: how is multinationality measured; what are the moderating variables; and what is the performance metric appropriate, as a framework to help illustrate the relativistic nature of MP studies.
The paper illustrates that the choice of distance dimensions, along which the “space” is formed, alters the relationship between MP. Furthermore, this relationship is relative to moderating variables that include among others: when the space is measured (time), point of reference and perspective, the firm’s resources (e.g. human and technological capabilities), and the performance measure considered.
This paper suggests new avenues and approaches toward exploring the effects of multinationality to improve methodological rigor. It identifies several important methodological shortcomings of current and previous research and suggests areas in which current research gaps must be filled to advance this body of knowledge. It introduces the notion of spatial relativism as a concept that will facilitate more fine-grained and contextualized studies.
