International diversification and performance in agri-food firms
Marta Fernández-Olmos () and
Vicente Pinilla ()
Additional contact information
Marta Fernández-Olmos: Faculty of Economics and Business Studies, Universidad de Zaragoza
Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza
: This paper studies the relationship between international diversification and performance in agri-food firms In line with the recent literature, it analyses the effects of the degree of internationalization using a uniform sample, a long-term focus and a measure that combines export intensity and regional diversification. The study empirically confirms the hypothesis of a horizontal S-curve relationship between diversification and performance and identifies three phases. Novice export firms are found in the first stage; their profits are low because they incur in the initial costs of exporting. Mature companies with a more advanced internationalization process are in the second stage; they benefit from the positive outcomes of operating at a larger scale. Lastly, the third stage contains internationally over-diversified companies; their performance decreases as a result of costs to enter extra-regional markets, which are especially steep in this sector, and dealing with greater organisational complexity
Keywords: : Agribusiness; International diversification; Firm performance; Degree of Internationalization (search for similar items in EconPapers)
JEL-codes: F23 L66 Q13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zar:wpaper:dt2015-01
Access Statistics for this paper
More papers in Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza Contact information at EDIRC.
Bibliographic data for series maintained by Vicente Pinilla ().