Multinationality, global market diversification and profitability among the largest US firms

Gongming Qian*, Ji LI

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

44 Citations (Scopus)

Abstract

This paper studies both geographic scale and scope of foreign operations for the largest US firms especially their strategic combinations by relating to the return performance. The test results indicate that the combination of high geographic scale and medium geographic scope of foreign operations outperformed other strategic combinations. This particularly suggests that the heavy or light geographic scope of foreign operations may possibly cause a downturn in profitability. The implication is that firms preparing themselves for overseas activities should consider the use of this strategic combination.

Original languageEnglish
Pages (from-to)325-335
Number of pages11
JournalJournal of Business Research
Volume55
Issue number4
DOIs
Publication statusPublished - Apr 2002

Scopus Subject Areas

  • Marketing

User-Defined Keywords

  • Global market diversification
  • Multinationality
  • Profitability

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