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The Penrose effect in the internationalization of professional service firms: an analysis of Japanese patent firms

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概要 The Penrose effect, or the limitation of the growth rate during expansion due to managerial constraints, has beenexamined in the context of business diversification, withdrawal, and MNE’s foreign dire...ct investment, primarily inthe for-profit sector. However, insufficient attention has been paid to its impact on professional service firms,particularly in the context of their expansion through service exports. The main purpose of this study is toexamine the Penrose eff ect in the internationalization of professional service firms through service exports.
This study focuses on large Japanese patent firms as traditional professional service firms and constructs paneldata for 48 large patent firms over the observation period from 2002 to 2010 to test our hypotheses.
Our results demonstrate a negative relationship between degree of internationalization and internationalbusiness growth, thus confirming the Penrose eff ect. Furthermore, we found that the degree ofinternationalization has a curvilinear relationship with international business growth, and that institutionaldistance does not have a negatively moderating eff ect on the relationship between degree of internationalizationand international business growth.
This study made a theoretical contribution to Penrose's growth theory and previous studies on internationalmanagement and professional service firms and international management by showing that the Penrose eff ectcan be observed in the international expansion of professional service firms through service exports. Moreover, this study identifies the factors that modify the Penrose eff ect, thereby making a significant theoreticalcontribution.
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登録日 2024.07.19
更新日 2024.10.03

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