Javascript must be enabled to continue!
The performance implications of intra‐ and inter‐regional geographic diversification
View through CrossRef
Abstract
Engaging 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 intra‐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 © 2010 John Wiley & Sons, Ltd.
Title: The performance implications of intra‐ and inter‐regional geographic diversification
Description:
Abstract
Engaging 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 intra‐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 © 2010 John Wiley & Sons, Ltd.
Related Results
JIT 2023 - Jornadas de Jóvenes Investigadores Tecnológicos
JIT 2023 - Jornadas de Jóvenes Investigadores Tecnológicos
Es un honor presentar este libro que compila los trabajos de investigación y desarrollo presentados en las Jornadas de Jóvenes Investigadores Tecnológicos (JIT) 2023. Este evento s...
Intra- and inter-regional expansion: a nonlinear model
Intra- and inter-regional expansion: a nonlinear model
PurposeThe purpose of this paper is to differentiate between intra- and inter-regional diversification and explore how each affects firm performance. Existing studies show that bot...
Export concentration and diversification impact on economic growth in the developed and developing countries of the world
Export concentration and diversification impact on economic growth in the developed and developing countries of the world
There is much evidence that export diversity has a positive effect on economic growth, but there is some evidence that the concentration of exports may be also related to economic ...
Opinions of Public School Teachers Toward School Uniforms
Opinions of Public School Teachers Toward School Uniforms
The purpose of the research was to investigate Kansas elementary and middle school teachers' opinions toward school uniforms. The independent variables investigated were academic l...
THE ROLE OF MANAGEMENT FACTORS IN THE CONCEPT OF THE DIVERSIFICATION STRATEGY OF THE ENTERPRISE'S FOREIGN ECONOMIC ACTIVITIES
THE ROLE OF MANAGEMENT FACTORS IN THE CONCEPT OF THE DIVERSIFICATION STRATEGY OF THE ENTERPRISE'S FOREIGN ECONOMIC ACTIVITIES
The current stage of the development of the process of diversification of the company's activities is characterized by the globalization of economic relations, the competitive stru...
Assessment of the Level of Economies' Foreign Trade Diversification
Assessment of the Level of Economies' Foreign Trade Diversification
The aim of the study is to consider the concept of diversification in the context of foreign trade, to clarify the classification of types of foreign trade diversification, ways to...
DIVERSIFICATION OF RURAL ECONOMICS IN SABAH: PATTERNS AND DETERMINANTS OF CHANGE
DIVERSIFICATION OF RURAL ECONOMICS IN SABAH: PATTERNS AND DETERMINANTS OF CHANGE
Economic diversification is fundamental in driving economic growth in rural areas. Encouragement of and stimulus for the economic diversification in the rural areas allow for the g...
Income optimization of rice paddy farmers in the narrow fields during the covid-19 pandemic in South Sumatra province
Income optimization of rice paddy farmers in the narrow fields during the covid-19 pandemic in South Sumatra province
This study aims to analyze the amount of income through business diversification as well as scenarios for increasing income in business diversification during the Covid-19 pandemic...

