A relational view on the performance effects of international diversification strategies

H. Emre Yildiz (), Sergey Morgulis-Yakushev (), Ulf Holm () and Mikael Eriksson ()
Additional contact information
H. Emre Yildiz: Mälardalen University
Sergey Morgulis-Yakushev: Stockholm School of Economics
Ulf Holm: Uppsala University
Mikael Eriksson: Stockholm School of Economics

Journal of International Business Studies, 2023, vol. 54, issue 1, No 12, 203-217

Abstract: Abstract International diversification is a fundamental pillar of multinational corporations’ (MNCs) growth strategies. Consequently, there is a considerable body of research on the performance implications of MNCs’ international diversification strategies. We extend this literature by adopting a relational view where we compare the diversification profiles of firms in an inter-organizational context. We argue that the relative characteristics of firms’ and their partners’ diversification profiles is an indicator of parties’ resource bases and thereby can explain if and when inter-organizational ties yield optimum performance outcomes. We examine these relative characteristics and propose a conceptual refinement by differentiating between the degree and content dimensions of international diversification. Analyzing data from 202 manufacturing firms from the S&P 500 list, we find that firms achieve optimum performance when their partners have moderately higher degrees of international diversification and a moderate overlap of presence in foreign markets.

Keywords: interlocking directorates; international diversification; organizational learning; resource dependence (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/s41267-022-00516-8 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:54:y:2023:i:1:d:10.1057_s41267-022-00516-8

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

DOI: 10.1057/s41267-022-00516-8

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().