WHY STRATEGIC FACTOR MARKETS MATTER: NEW MULTINATIONALS' GEOGRAPHIC DIVERSIFICATION AND FIRM PROFITABILITY

• 成果类型: Article
• 署名作者: Kim, Heechun; Hoskisson, Robert E.; Lee, Seung-Hyun
• 署名单位: University System of Georgia; Georgia State University; Rice University; University of Texas System; University of Texas Dallas
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2229
• 发表日期: 2015
• 页码: 518-536
• 关键词: geographic diversification; new multinationals; RESOURCE-BASED THEORY; organizational learning theory; strategic factor markets theory

摘要

This study examines firm profitability differences among new multinational enterprises (NMNEs) pursuing geographic diversification into two distinct types of geographic locations based on the development of strategic factor markets. Building on strategic factor markets theory, we propose that firm-specific advantages of NMNEs contribute differentially to firm profitability because they evolve differently given strategic factor market differences in host compared to home countries. Using a sample of Korean manufacturing MNEs during the 1993-2003 period, we find that geographic diversification into resource-poorer host countries has a positive relationship with firm profitability, whereas geographic diversification into resource-richer host countries has a U-shaped relationship with firm profitability. Our study demonstrates why strategic factor marketsan important and often overlooked contextual factormatter in exploring rationales for geographic diversification. Copyright (c) 2014 John Wiley & Sons, Ltd.