Regional diversification and firm performance

Gongming Qian*, Lee Li, Ji LI, Zhengming Qian

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

165 Citations (Scopus)

Abstract

This study examines how regional diversification affects firm performance. The results indicate that regional diversification has linear and curvilinear effects on firm performance. Regional diversification enhances firm performance linearly up to a certain threshold, and then its impact becomes negative. The results also show that firms of developed countries maximize their performance when they operate across a moderate number of developed regions and a strictly limited number of developing regions. This explains why internationalization by most international firms is regional rather than global.

Original languageEnglish
Pages (from-to)197-214
Number of pages18
JournalJournal of International Business Studies
Volume39
Issue number2
DOIs
Publication statusPublished - Mar 2008

Scopus Subject Areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

User-Defined Keywords

  • Firm performance
  • Multinational enterprises
  • Regional diversification

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