THE BENEFITS OF GEOGRAPHIC SALES DIVERSIFICATION: HOW EXPORTING FACILITATES CAPITAL INVESTMENT

• 成果类型: Article
• 署名作者: Shaver, J. Myles
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.924
• 发表日期: 2011
• 页码: 1046-1060
• 关键词: Diversification; Exporting; Capital investment; corporate strategy; international strategy

摘要

Many strategic investments require firms to make upfront outlays to generate profits at a later date. When firms have limited access to external capital, they have to rely on internally generated funds for these investments. In this case, their strategic investments are constrained by cash flow. I predict that by geographically diversifying sales (i.e., exporting), firms can relax this constraint because exporting signals more stable expected cash flows and firm quality, which can increase external capital providers' willingness to fund investments. Examining a representative sample of Spanish manufacturers from 1990 to 1998, I find support that exporting mitigates investment liquidity constraints allowing firms to make strategic investments they would not otherwise be able to make. This highlights how diversification can be a strategy to create and maintain competitive advantage. Copyright (C) 2011 John Wiley & Sons, Ltd.