The Impact of Internationalization on Firm Performance of High-Tech Companies in Poland in the Context of Covid-19

Abstract

This study aims to examine the impact of the internationalization of high-tech companies on their firm performance against the COVID-19 crisis in Poland. The research covers the period of 2018-2020 (3 years) and encompasses 591 firm-year observations, with 192 high-tech firm-year observations (64 companies) and 399 non-high-tech firm-year observations (133 companies). To find out the differences between subsamples, the U Mann-Whitney test was implemented. At the same time, correlation and regression analysis were exploited to highlight the impact of the crisis, internationalization, and the company's status on firm performance. Our research shows that, in Poland, the COVID-19 crisis had a generally weak impact on internationalization and firm performance. However, in a high-tech subsample, we find an increase in profitability during the COVID-19 crisis. Both subsamples show an increase in financial liquidity ratios during the COVID-19 crisis. The study also demonstrated that internationalization has a weak impact on firm performance. At the same time, the company's status (high-tech) positively impacts internationalization, financial liquidity, and company growth.