Abstract:
Internationalization can affect a firm’s performance. This study determines how a firm’s
engagement in international business activities affects its performance in Botswana. The
study uses the Ordinary Least Squares method to regress firm performance over the
degree of internationalization index (DOI), a composite variable of export intensity,
import intensity and FDI intensity and control variables, size of the firm and the industry
in which the firm operates. The results show that there is a positive relationship between
firm performance and the degree of internationalization. This implies that among other
growth strategies, internationalization can be considered as an important strategy to
improve firm performance. The policy implication of these results is that efforts should
be made to assist firms to internationalize their operations as a way of improving their
performance.
