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Performance Implications of MNEs' Diversification Strategies and Institutional Distance
Author(s) -
Chao Mike ChenHo,
Kim Seung H.,
Zhao Hongxin,
Hsu ChinChun
Publication year - 2012
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21492
Subject(s) - multinational corporation , diversification (marketing strategy) , international business , business , moderation , industrial organization , institutional theory , sample (material) , economic geography , marketing , economics , management , computer science , chemistry , finance , chromatography , machine learning
By proposing a conceptual outline for a general model that explains the link between multinational enterprises' (MNEs') diversification and their performance, this study tests the moderating effects of institutional distance empirically. Integrating literature from a strategic perspective within international business research, the proposed integrated, multidimensional framework can analyze MNEs' product diversification, international diversification, and institutional distance, as well as the impacts of these elements on firm performance. A sample of Fortune Global 500 companies confirms this moderation and extends prior research by establishing the importance of relationships among MNEs' product and international diversification, institutional distance, and performance. © 2012 Wiley Periodicals, Inc.