Effects of International Diversity and Product Diversity on the Performance of Multinational Firms

Hong Kong University of Science & Technology Business School Research Paper

Academy of Management Journal, Vol. 39, No. 1, pp. 179-196, 1996

25 Pages Posted: 15 Aug 2007

See all articles by Stephen Tallman

Stephen Tallman

University of Richmond - E. Claiborne Robins School of Business

Jiatao Li

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization

Abstract

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.

Suggested Citation

Tallman, Stephen B. and Li, Jiatao, Effects of International Diversity and Product Diversity on the Performance of Multinational Firms. Hong Kong University of Science & Technology Business School Research Paper, Academy of Management Journal, Vol. 39, No. 1, pp. 179-196, 1996, Available at SSRN: https://ssrn.com/abstract=1007170

Stephen B. Tallman (Contact Author)

University of Richmond - E. Claiborne Robins School of Business ( email )

Richmond, VA 23173
United States

Jiatao Li

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization ( email )

5473
Clear Water Bay, Kowloon
Hong Kong, PRC
852-2358 7757 (Phone)

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