TITLE

The effect of product diversification strategies on the relationship between international diversification and firm performance

AUTHOR(S)
Chang, Shao-Chi; Wang, Chi-Feng
PUB. DATE
March 2007
SOURCE
Journal of World Business;Mar2007, Vol. 42 Issue 1, p61
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Abstract: Previous studies have provided mixed evidence on the interaction effect of product and international diversification on firm performance. This study extends this stream of research by investigating the differential impacts of product diversification strategies on the relationship between international diversification and firm performance. We find that while related product diversification positively influences the performance of multinational firms, unrelated product diversification negatively moderates the international diversification�performance relationship. The evidence is robust for different models of international diversification and firm performance, and holds for firms in both the service and manufacturing industries. Our findings highlight the importance of distinguishing different product diversification strategies, and provide a potential explanation for prior mixed evidence.
ACCESSION #
23809350

 

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