This article analyzes both geographic scale and scope of foreign operations for the largest U.S. firms and especially their strategic combinations by relating to the risk of profits. 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 the risk performance. The implication is that firms preparing themselves for overseas activities should consider the use of this strategic combination.
Scopus Subject Areas
- Business and International Management
- Strategy and Management
- Global market diversification
- Risk performance