Performance Implications of MNEs' Diversification Strategies and Institutional Distance |
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| Authors: | Mike Chen‐Ho Chao Seung H Kim Hongxin Zhao Chin‐Chun Hsu |
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| Institution: | 1. Cotsakos College of Business, William Paterson University of New Jersey;2. Boeing Institute of International Business, John Cook School of Business, Saint Louis University;3. Saint Louis University |
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| Abstract: | By proposing a conceptual outline for a general model that explains the link between multinational enterprises' (MNEs') diversification and their performance, this study tests the moderating effects of institutional distance empirically. Integrating literature from a strategic perspective within international business research, the proposed integrated, multidimensional framework can analyze MNEs' product diversification, international diversification, and institutional distance, as well as the impacts of these elements on firm performance. A sample of Fortune Global 500 companies confirms this moderation and extends prior research by establishing the importance of relationships among MNEs' product and international diversification, institutional distance, and performance. © 2012 Wiley Periodicals, Inc. |
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