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 language | English |
|---|---|
| Pages (from-to) | 197-214 |
| Number of pages | 18 |
| Journal | Journal of International Business Studies |
| Volume | 39 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 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