Host country institutional diversity and MNE performance persistence

Real options theory is applied widely to the study of MNEs’ international expansions. This stream of research views the MNE as a network that incorporates a portfolio of options to maximize return in changing environmental conditions (Kogut & Kulatilaka, 1994). In this study, we examine whether and how flexibility benefits of multinationality influence MNEs’ ability to sustain superior performance. From a real options valuation perspective, our...