Abstract
The relationship between firm resources and internationalisation has long been an interest to researchers in international business. In other words, how do firm resources affect the internationalisation efforts of firms and consequently their performance? It has generally been argued that internationalisation affects firm performance positively. However, a major deficit of most existing studies has been the failure of incorporating firm resources in examining the relationship between internationalisation and performance. Due to the importance of firm resources, this study examines whether the potential performance effects of internationalisation are due to firm resources. The present study has tested this alternative hypothesis by examining US manufacturing firms from various industries. Results indicate that firms must possess certain firm resources in order to benefit from internationalisation.