search query: @indexterm Company performance / total: 1230
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| Author: | Li, J. Yue, D.R. |
| Title: | Market size, legal institutions, and international diversification strategies: Implications for the performance of multinational firms |
| Journal: | Management International Review
2008 : VOL. 48:6, p. 667-688 |
| Index terms: | multinational companies international diversification strategy company performance markets institutions |
| Language: | eng |
| Abstract: | This paper identifies two country-level environmental constituents, namely, domestic market size and legal institutions (here as: lg-insts.), to examine how these resources influence multinational firms' (as: MNCs) international diversification (as: int-div.) strategies. It is proposed that home country lg-insts. moderate the link btw. firm performance (as: f-perf.) and geographic diversification. Using historical data from more than 400 MNCs based in 13 developed economies, it is suggested that a MNC's degree of int-div. has a U-shaped relationship with the size of the firm's domestic market. Civil law countries' (as: c-l-ctrs.) firms are more likely to pursue int-div. than their counterparts from common law countries. The effect of int-div. on f-perf. seems more pronounced among MNCs from c-l-ctrs. |
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