دانلود رایگان مقاله انگلیسی تنوع شرکتی و عملکرد مالی: شرکت های تولیدی جهان گستر - اشپرینگر 2018

Introduction

Tis paper attempts to link industry and national contexts to the joint efect of product and international diversifcation on frm performance. Te research on how frm performance is afected by diversifying into new product and geographic markets has been an important topic of international business and strategy literature for more than 40 years (Bowen & Sleuwaegen, 2017; Castellani, Montresor, Schubert, & Vezzani, 2017). Product and international diversifcation are vital strategies in organisation expansion (Kistruck, Qureshi, & Beamish, 2013). Despite the fact that increasing number of frms have been engaging in the both diversifcation strategies, few papers study the interaction between the two diversifcation strategies and its performance implications. Most previous papers only focus on one type of diversifcation. Furthermore, those studies that do consider the joint efect of the two diversifcation strategies on frm performance (Geringer, Tallman, & Olsen, 2000; Hitt, Hoskisson, & Kim, 1997; Kistruck et al., 2013; Sambharya, 1995) identify either a complementary or a substitute efect between two diversifcation strategies. Tey generally ignore, however, the underlying factors that strengthen or weaken the joint efect.

Discussion and Conclusion

The relationship between diversifcation strategies and frm fnancial performance has been discussed for more than 40 years (Bowen & Sleuwaegen, 2017; Castellani & Zanfei, 2006), with inconclusive empirical results. Most of the extant literature focuses on the individual efects of product or geographic diversifcation on the frm performance, but it has been argued that more research is required on the interactive efect of the two diversifcation strategies (Bowen & Sleuwaegen, 2017). Some recent papers do study the interaction of the two diversifcation strategies, supporting either a substitute or a complementary efect (Geringer et al., 2000; Hitt et al., 1997; Kistruck et al., 2013). However, these studies disregard the contextual factors that strengthen or weaken the joint efect. In addition, these previous studies mainly rely on data for US or Japanese frms (Bowen et al., 2015; Denis et al., 2002; Sambharya, 1995).

Tis paper addresses these limitations by analysing data for 13,142 frms from 70 countries over the period 2004–2013. Te central fnding is that there is a negative joint efect of two diversifcation strategies on frm performance, supporting the substitute relationship between two diversifcation strategies. Product diversifcation tends to substitute for, instead of complement, international diversifcation. Te frm faces a trade-of between the two strategies due to resource constraints and the increased bureaucratic costs of implementing both strategies simultaneously in the short term. Tese results suggest that, when developing corporate strategy, frm need to consider the interaction between product and international diversifcation strategies. One suggestion is to combine diferent levels of the two diversifcation strategies. For example, Meyer (2006) suggests that “global focusing”—increasing international diversifcation in a narrow range of products—promotes frm growth.