How International Organizational Structure Decisions Affect Firm Performance

As German firms increasingly expand to foreign nations, managers have to be aware ofthe performance implications of internationalization processes. We find that internationalizationdoes not have an ongoing positive performance effect and needs to be managedcarefully, especially after a certain level of internationalization is surpassed. In order tomaintain an overall financial success of further overseas operations, managers have to setup effective international organizational networks. An appropriate organization of internationalactivities adapted to environmental pressures for integration or localization enablesfirms to better profit from their international activities.