Rethinking the performance implication of regional diversification: The interplay between intra- and inter-regional diversification
Jong Min Lee
Journal of Business Research, 2025, vol. 199, issue C
Abstract:
This study explores how the levels of intra- and inter-regional diversification are associated with multinational enterprise (MNE) performance, both independently and in combination. I argue that the effects of intra- and inter-regional diversification are not linear, and that intra- and inter-regional diversification moderates each other’s effects on MNE performance. This study reveals that both intra- and inter-regional diversification exhibit an inverted U-shaped relationship with MNE performance, with the impact of inter-regional diversification being stronger than that of intra-regional diversification. The result also shows that MNEs with moderate levels of both intra- and inter-regional diversification outperform MNEs with different internationalization patterns. This study concludes that ‘balanced’ intra- and inter-regional diversification can be more crucial for achieving better firm performance rather than the degrees of intra- and inter-regional diversification.
Keywords: Multinational enterprises; Regionalization theory; Intra-regional diversification; Inter-regional diversification; Internationalization-performance relationship (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:199:y:2025:i:c:s014829632500342x
DOI: 10.1016/j.jbusres.2025.115519
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