This study examines the effect of international dispersion on profitability. We use an institution-based approach to propose that increases in international dispersion lead, on average, to profitability downturns. We also argue that this liability of foreignness will affect multinationals from infrastructure industries to a lesser extent because in these industries: (1) the importance of cultural fit in products is low; (2) firms possess regulatory expertise; and (3) firms have limited aggregation opportunities at the regional level. We test our hypotheses on a panel of Spanish listed firms (1986–2007). Our findings point to a negative linear relationship between international dispersion and profitability, which is flatter for infrastructure multinationals. These results contribute to a more context-based understanding of internationalization that highlights the shortcomings of establishing a dispersed international footprint.

中文翻译：

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国际分散和盈利能力：一种基于制度的方法

这项研究考察了国际分散对盈利能力的影响。我们使用一种基于机构的方法来建议，国际分散度的增加平均导致利润率下降。我们还认为，这种外国责任会在较小程度上影响基础设施行业的跨国公司，因为在这些行业中：（1）产品中文化适应的重要性较低；（2）公司具备监管专业知识；（3）公司在区域层面的聚集机会有限。我们在一组西班牙上市公司（1986-2007年）中检验了我们的假设。我们的研究结果表明，国际分散度与获利能力之间存在负线性关系，这对于基础设施跨国公司而言更为平坦。