International Diversification and Firm Performance: The contingent influence of Product Diversification
D. Karthik,
Rejie George and
Chitra Singla
No WP2015-03-32, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department
Abstract:
Despite decades of research, the relationship between international diversification (ID) and performance (P) represents a quandary in the field of International Business.. Though, there seems to be some consensus among scholars on the non-linear nature of the relationship; researchers in the field continue to urge further work in the field for a more nuanced approach to study this relationship. This paper takes a step forward to address that call by arguing that the underlying relationship between ID and P is contingent upon product diversification (PD) of the firm. In particular, we hypothesize and provide evidence that the ID and P relationship is positively moderated by PD when the firm has both high levels of both ID and PD or low levels of both ID and PD.
Date: 2015-04-07
New Economics Papers: this item is included in nep-bec, nep-cse and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:13345
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