1. ¹IMD, Lausanne, Switzerland
2. ²INSEAD, Singapore
3. ³London Business School, Regents Park, London, UK

Correspondence: C Bouquet, IMD, Ch. de Bellerive 23, PO Box 915, CH–1001 Lausanne, Switzerland. Tel: +41 21 618 02 54; Fax: +41 21 618 07 07; E-mail: Cyril.Bouquet@imd.ch

Received 26 September 2006; Revised 29 November 2007; Accepted 4 December 2007; Published online 2 October 2008.

Abstract

This study examines the performance consequences of international attention, defined as the extent to which headquarters executives in the multinational enterprise (MNE) invest time and effort in activities, communications, and discussions aimed at improving their understanding of the global marketplace. Using detailed questionnaire and archival data on 135 MNEs, our analysis revealed three significant findings. First, international attention can be operationalized as a meta-construct that consists of three interrelated and reinforcing dimensions. Second, international attention has a curvilinear (inverted U-shape) relationship with MNE performance. Third, the performance benefits of international attention increase with three categories of moderating factors: the international assignment experience of top executives, the independence of value-adding activities across country locations, and the degree of industry dynamism.