Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261868 
Year of Publication: 
2020
Citation: 
[Journal:] BRQ Business Research Quarterly [ISSN:] 2340-9436 [Volume:] 23 [Issue:] 1 [Publisher:] Sage Publishing [Place:] London [Year:] 2020 [Pages:] 1-17
Publisher: 
Sage Publishing, London
Abstract: 
This paper studies how the nature and shape of the relationship between inter- national diversification (ID) and performance (P) may vary according to a firm's geographical focus of internationalization. Using a sample of Spanish multinational firms for the 2004-2012 period we find an M-shaped relationship. However, significant differences are found when the different geographical foci of internationalization are considered. Strong support is found when firms adopt a regional focus (an inverted S-curve when the ID measure refers to the number of foreign countries and an M-curve when it refers to the size of the network of foreign sub- sidiaries), a biregional focus (an S-curve) and a semiglobal focus (an inverted S-curve but also an M-curve with foreign subsidiaries). These findings and their pattern suggest the critical impor- tance of the country of origin and the geographical focus of internationalization in explaining the relationship between ID-P.
Subjects: 
International diversification
Firm performance
Geographical focus
M-curve
Spain
Multinational firms
JEL: 
C33
F23
G15
L25
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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