THE PERFORMANCE IMPLICATIONS OF INTRA- AND INTER-REGIONAL GEOGRAPHIC DIVERSIFICATION
Publication in refereed journal


Times Cited
Web of Science129WOS source URL (as at 26/09/2020) Click here for the latest count
Altmetrics Information
.

Other information
AbstractEngaging the debate regarding the appropriate level of geographic diversification for multinational enterprises (MNEs), we examine a critical, yet unresolved, question: How is performance impacted by the MNE's level of intra- and inter-regional diversification versus the total level of geographic diversification? Using data from 123 U.S.-based MNEs over a seven-year period and leveraging both sales-based and subsidiary-based measures for diversification, we find that performance increases at an increasingly higher rate as firms concentrate more heavily on intro-regional diversification. Regarding inter-regional diversification and total geographic diversification, we find inverted-U relationships to exist between firm performance and the level of geographic diversification. Different from recent research on multinationality, our robustness checks indicate no evidence of a sigmoidal relationship between the degree of regional diversification and performance. Copyright (C) 2010 John Wiley & Sons, Ltd.
All Author(s) ListQian GM, Khoury TA, Peng MW, Qian ZM
Journal nameStrategic Management Journal
Year2010
Month9
Day1
Volume Number31
Issue Number9
PublisherWiley: 24 months
Pages1018 - 1030
ISSN0143-2095
eISSN1097-0266
LanguagesEnglish-United Kingdom
Keywordsgeographic diversification; geographic spread; MNE; multinational enterprise strategy; multinationality performance; regionalization
Web of Science Subject CategoriesBusiness; BUSINESS; Business & Economics; Management; MANAGEMENT

Last updated on 2020-27-09 at 00:38