This analysis highlights the capability of multinational corporations (MNCs) to leverage corporate-level resources globally. Research by Becerra and Santalo indicates that approximately ten percent of the variability in regional units can be attributed to corporate effects, which strengthen as the MNC becomes more internationalized. This implies that highly internationalized MNCs excel in integrating their operations, utilizing home-grown advantages, and disseminating resources and capabilities across subsidiaries. Mauri and Sambharya further explore this integration, examining its impact on MNC performance through the lens of inter-area product flows. Their findings reveal a non-linear relationship between global integration and performance. At low integration levels, performance declines, improves at intermediate levels, but deteriorates again at high integration levels. The authors suggest that both very low and very high integration disrupt the balance between the costs and benefits of global integration activities, leading to negative outcomes for MNC performance.
