Effects of International Diversity and Product Diversity on the Performance of Multinational Firms
Academy of Management Journal, Vol. 39, No. 1, pp. 179-196, 1996
25 Pages Posted: 15 Aug 2007
This study examined the relationships among international diversity, product diversity, and firm performance. For a sample of large American industrial multinational enterprises (MNEs), it showed a consistent quadratic relationship between product diversification and MNE performance but minimal performance differences across different measures of international diversity. Analysis of the interactions of international diversity and product diversity indicates a weak effect from increasing internationalization on the performance effect of product diversity.
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