Unraveling the Relationships Between Internationalization and Product Diversification Among the World's Largest Food and Beverage Enterprises

The Future of Foreign Direct Investment and the Multinational Enterprise

ISBN: 978-0-85724-555-7, eISBN: 978-0-85724-556-4

ISSN: 1064-4857

Publication date: 3 May 2011

Abstract

This chapter examines the interrelationships between internationalization and product diversification among the world's l35 largest food and beverage enterprises. Based on the argument that food and beverage enterprises enjoy economies of scope when moderately diversifying into new countries and product areas, but encounter resource constraints when extremely diversified and internationalized, we expect to find an inverted U-shaped relationship between the two strategies. Nevertheless, we find that the relationships between the two strategies show both an inverted U-shaped (when geographic diversification is the dependent variable and product diversification the independent one) and a U-shaped pattern (when product diversification is the dependent variable and geographic diversification the independent one). These results imply that the relationships between internationalization and product diversification among food and beverage enterprises are more complex than currently conceived.

Keywords

Citation

Hashai, N., Almor, T., Papanastassiou, M., Filippaios, F. and Rama, R. (2011), "Unraveling the Relationships Between Internationalization and Product Diversification Among the World's Largest Food and Beverage Enterprises", Ramamurti, R. and Hashai, N. (Ed.) The Future of Foreign Direct Investment and the Multinational Enterprise (Research in Global Strategic Management, Vol. 15), Emerald Group Publishing Limited, Bingley, pp. 271-299. https://doi.org/10.1108/S1064-4857(2011)0000015016

Download as .RIS

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.