Regional diversification and firm performance

• 成果类型: Article
• 署名作者: Qian, Gongming; Li, Lee; Li, Ji; Qian, Zhengming
• 署名单位: Chinese University of Hong Kong; York University - Canada; Hong Kong Baptist University; Xiamen University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/palgrave.jibs.8400346
• 发表日期: 2008
• 页码: 197-214
• 关键词: Multinational enterprises; regional diversification; firm performance

摘要

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.