A STUDY OF THE MODERATING EFFECTS OF FIRM AGE AT INTERNATIONALIZATION ON FIRM SURVIVAL AND SHORT-TERM GROWTH

Research on fi rm internationalization has focused primarily on the antecedents, rather than outcomes, of the strategic decision to enter foreign markets. In addition, factors moderating the outcomes of internationalization have not received systematic analysis. Aiming to fi ll these gaps in the literature, the current study examines the moderating effects of fi rm age on pos-tinternationalization survival and growth. Consistent with the liabilities of newness perspec-tive, we suggest that fi rm age will have a positive moderating effect on postinternationalization survival. Building from the liabilities of aging perspective, we propose that fi rm age will have a negative moderating effect on postinternationalization short-term growth. We test these arguments using a longitudinal sample of 787 fi rms. Results showed that, postinternationaliza-tion, younger fi rms experienced signifi cantly higher rates of short-term growth than older fi rms. Findings regarding fi rm age and survival, postinternationalization, were, however, not conclusive. Overall, our fi ndings indicate that the timing of internationalization has important implications with regard to the short-term growth of fi rms. Copyright © 2010 Strategic Management Society