scholarly journals AN ANALYSIS OF THE RELATIONSHIPS BETWEEN INTERNATIONAL DIVERSIFICATION, PRODUCT DIVERSIFICATION, FIRM RESOURCES AND PERFORMANCE.

2009 ◽  
Vol 2009 (1) ◽  
pp. 1-6 ◽  
Author(s):  
NEJAT CAPAR
2014 ◽  
Vol 52 (5) ◽  
pp. 897-915 ◽  
Author(s):  
Yan Chen ◽  
Yiwei Jiang ◽  
Chengqi Wang ◽  
Wen Chung Hsu

Purpose – The purpose of this paper is to examine how firm resources and diversification strategy explain the performance consequences of internationalization of emerging market enterprises. Design/methodology/approach – The paper conducts a regression analysis by using a novel panel data set comprising of 685 listed Chinese firms over the period of 2008-2011. Findings – The results show that the relationship between internationalization and performance is inverse U-shaped. Further, marketing resources play a greater role in enhancing the performance effects of internationalization than technological resources do. Related product diversification enhances the performance effects, while unrelated product diversification does the contrary. Research limitations/implications – The study focusses on listed firms in one country, and as a result, the findings cannot be generalized to non-listed firms and firms in other countries. Practical implications – This paper offers guidelines for international managers to improve performance of internationalization by developing a particular type of resources and diversification strategy. Originality/value – This paper extends the literature on the functional form of the internationalization-performance relationship, and further suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and focusses on firm-specific resources and strategies that may facilitate or constrain the performance effects of internationalization.


2020 ◽  
Vol 23 (2) ◽  
pp. 91-106
Author(s):  
Diana Benito-Osorio ◽  
Alberto Colino ◽  
Luis Ángel Guerras-Martín ◽  
José Ángel Zúñiga-Vicente

This study explores both the individual impact of geographical diversification and its effect combined with product diversification on small and medium-sized enterprises’ (SMEs) performance. Unlike most prior studies, this study distinguishes between related and unrelated product diversification. The research setting is a sample of manufacturing SMEs (1994–2014). By using dynamic panel data models, the results provide statistical support for the existence of a horizontal S-shaped relationship between geographical diversification and performance. The findings also indicate that while related product diversification positively enhances the performance of those SMEs engaged in geographical diversification (albeit not indefinitely), unrelated product diversification may significantly impair it, especially for SMEs opting for low and high levels of international diversification. Our study reveals that product and international diversification strategies in the case of SMEs are complementary or substitutive strategies depending on the specific type of product diversification strategy and the level of geographical diversification adopted. JEL CLASSIFICATION: F23; L25; M16


2012 ◽  
pp. 87-103
Author(s):  
Claudio Giachetti

Despite much ado about the effectiveness of ‘product' diversification, there is very limited knowledge about the impact of ‘service' diversification on firm performance. By taking a resource-based perspective, this study explores the service diversificationperformance relationship. Results show a consistent inverse U-shaped relationship between service diversification and firm performance, with the slope positive at low and moderate levels of service diversification but negative at high levels of service diversification. Moreover, results show that competitive intensity negatively moderates the relationship between service diversification and performance, while the moderating effect of firm's size is not significant. Hypotheses are tested with data on 52 Italian facility management firms over the 2000-2009 time period.


2019 ◽  
Vol 9 (3) ◽  
pp. 297-318 ◽  
Author(s):  
Rodrigo Basco

Purpose The purpose of this paper is to compare the post-entry firm behavior of firms owner-managed by entrepreneurs who entered for family-oriented vs opportunity-oriented reasons. Design/methodology/approach Using the institutional logics perspective, the author argues that firms under the influence of opportunity-oriented or family-oriented owner-managers may differ in their internal practices, purpose, strategies, and performance. The author follows an inductive research methodology strategy by performing multivariate analyses with a sample of 1,733 Chilean firms to explore the preliminary conjectures. Findings Firms owner-managed by entrepreneurs who entered for a family-oriented reason finance their investment with firm resources, are less dependent on one customer and are willing to put forth less innovation effort than firms owner-managed by entrepreneurs who entered for an opportunity-oriented reason. No differences were found in terms of employee productivity. Additionally, the results show that young firms owner-managed by opportunity-oriented entrepreneurs have higher growth ratios than young firms owner-managed by family-oriented entrepreneurs. Inversely, old firms owner-managed by entrepreneurs who entered for an opportunity-oriented reason grow much less than old firms owner-managed by entrepreneurs who entered for a family-oriented reason. Originality/value This paper contributes to the literature at the intersection of family business and entrepreneurship by addressing the calls made by Aldrich and Cliff (2003) and Discua Cruz and Basco (2018) to better understand the family’s influence on entrepreneurship.


2005 ◽  
Vol 22 (1) ◽  
pp. 65-88 ◽  
Author(s):  
Lin Tongli ◽  
Er Jwee Ping ◽  
Winston Kwok Chee Chiu

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