The impact of internationalization on firm performance in Southeast Asian countries

Abstract

This thesis investigates the impact of internationalization on the performance of manufacturing firms in Southeast Asian countries. The research uses data from the World Bank enterprise survey conducted in 2023, covering firms in five Southeast Asian countries: Vietnam, Cambodia, Indonesia, Philippines, and Singapore. Descriptive statistics, Pearson correlation, and the Ordinary Least Squares method were employed to examine the relationship between the Degree of Internationalization (DOI) and firm performance, measured by Return on Sales (ROS). The results indicate an inverted U-shaped relationship between internationalization and firm performance in Cambodia, Indonesia, the Philippines, and Vietnam. Based on these findings, the author proposes managerial implications for manufacturing firms in Southeast Asia to optimize their internationalization strategies and enhance overall performance.