When geography matters: International diversification and firm performance of Spanish multinationals

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: BRQ Business Research Quarterly ; ISSN: 2340-9436 ; Volume: 23 ; Year: 2020 ; Issue: 1 ; Pages: 1-17 ; London: Sage Publishing

Classification and Topics

• Classification: Management ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Multinational Firms; International Business ; International Financial Markets ; Firm Performance: Size, Diversification, and Scope
• Subject: International diversification ; Firm performance ; Geographical focus ; M-curve ; Spain ; Multinational firms

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mendoza, Xavier ; Espinosa Méndez, Christian ; Araya-Castillo, Luis
• Event: Veröffentlichung
• (who): Sage Publishing
• (where): London
• (when): 2020

Further information

• DOI: doi:10.1177/2340944420898981
• Handle: http://hdl.handle.net/10419/261868
• Last update: 10.03.2025, 11:44 AM CET