Regional diversification and firm performance

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

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    210 Citations (Scopus)


    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
    Issue number2
    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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