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Author: | Hitt, M. |
Title: | International diversification: effects on innovation and firm performance in product-diversified firms |
Journal: | Academy of Management Review
1997 : AUG, VOL. 40:4, p. 767-798 |
Index terms: | INTERNATIONAL INNOVATION COMPANIES |
Language: | eng |
Abstract: | Theory suggests and results show that firm performance is initially positive but eventually levels off and becomes negative as international diversification increases. Product diversification moderates the relationship between international diversification and performance. International diversification is negatively related to performance in nondiversified firms, positively related in highly product diversified firms, and curvilinearly related in moderately product-diversified firms. |
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