Does international strategy matter?

Implicit in much international business research is the assumption that international strategy matters. In this paper, we directly address this pivotal assumption by applying a novel method for estimating multidimensional fit. This method can handle comprehensive organizational performance models with dozens of main (linear and non-linear) and (bivariate and higher-order) interaction effects, even with relatively small sample sizes. We develop a contingency logic tailored to international business, and anchoring on the role of international strategy. In so doing, we define seven categories of fit. For data about approximately 175 MNEs' subsidiaries we find evidence that supports international business' implicit assumption that international strategy matters.