International diversification and firm performance: Role of information technology investments

Chari, Murali D.R.; Devaraj, Sarv; David, Parthiban
June 2007
Journal of World Business;Jun2007, Vol. 42 Issue 2, p184
Academic Journal
Abstract: The empirical studies to date have not found consistent support for the performance advantages of international diversification. One reason suggested by internalization theory is that leveraging firm specific assets is critical for enhancing performance from international diversification. We develop and empirically test the hypothesis that investment in information technology helps in leveraging firm specific assets across country borders and thereby contributes to enhanced performance from international diversification.


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