Search results

1 – 10 of 705
Article
Publication date: 22 March 2019

Hueiting Tsai, Shengce Ren and Andreas B. Eisingerich

The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it…

Abstract

Purpose

The purpose of this paper is to theorize and empirically examine the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it investigates they key firm capabilities, which moderate the relationships between intra- and inter-regional geographic diversification and firm performance.

Design/methodology/approach

In this research, the authors studied 366 listed companies that invest in mainland China. The authors used the Taiwan Economy Journal database to construct a panel data set from 2005 to 2014 and employed panel regression estimations as part of the empirical analyses.

Findings

The authors find that the effect of regional diversification on firm performance is significantly influenced by the contexts of the expansion. More specifically, the results show that the effect of intra-regional geographic diversification on firm performance takes the form of a U-shape relationship. In contrast, the authors find that inter-regional geographic diversification has a negative effect on firm performance. Firm marketing, research and development (R&D) and managerial capabilities moderate these relationships.

Research limitations/implications

First, the companies studied in this research are mainly Taiwanese manufacturers with investments in mainland China. Second, the current model can be expanded by exploring additional process explanations and moderators in future research.

Practical implications

An important practical implication of this research is that when firms choose an intra-regional expansion strategy in China, they should adopt a moderate provincial diversification strategy in the invested region and reinforce its marketing capability to enhance firm performance. A careful consideration of a firm’s marketing, R&D and managerial capabilities is needed for successful regional diversification strategies in the China market.

Originality/value

The findings of this study contribute significantly to the existing literature on firms’ regional diversification. First, the authors explore and empirically test intra- and inter-regional geographic diversification strategies in China. The authors find that the effect of regional diversification on firm performance varies according to the contexts of the expansion (for instance, global, regional, in a single country). Second, this study furthers the research theme of intra- and inter-regional diversification by introducing and investigating previously unexplored firm capabilities as part of the framework.

Article
Publication date: 16 April 2018

Arkadiusz Ral-Trebacz, Stefan Eckert and Marcus Dittfeld

Current discussions in the international business community have demonstrated that the focus of MNCs operations tends to be more regional than global. This paper aims to…

Abstract

Purpose

Current discussions in the international business community have demonstrated that the focus of MNCs operations tends to be more regional than global. This paper aims to investigate the performance effects of intra-regional and inter-regional strategy among large companies in European countries.

Design/methodology/approach

The authors test the research hypothesis on a sample of 25 largest European companies from six regional, as well as global-oriented, industries using the random effects model.

Findings

The authors find that an increase in a firm’s degree of regionalization leads to value enhancement. On the other side, the results reveal that an inter-regional strategy is associated with value discount. Moreover, empirical findings show that the higher the degree of inter-regional expansion the more pronounced is the effect of firm-specific assets related to marketing on performance. Hence, the negative valuation impact of an inter-regional strategy may be attenuated or even overcome through the interplay of inter-regional internationalization and firm-specific assets related to marketing.

Originality/value

By introducing a theoretical framework, the authors discuss the performance effects of regional-oriented and inter-regional-oriented strategies. Furthermore, they investigate the moderating effect of inter-regional expansion on the performance impact of firm-specific assets related to marketing in the case of large companies. Empirically, they test the hypotheses on a sample of large firms for an 11-year period using different measurements regarding the degree of intra-regional and inter-regional expansion.

Details

Multinational Business Review, vol. 26 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 12 April 2013

Winfried Ruigrok, Dimitrios Georgakakis and Peder Greve

This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the…

1362

Abstract

Purpose

This paper contributes to the debate about the performance implications of adopting a regional as opposed to a global strategic posture. The aim of this paper is to argue that the performance effects of a regionalization strategy vary based on the characteristics of the industry in which the MNE operates and the composition of its top management team (TMT).

Design/methodology/approach

This analysis is based on a cross‐sectional dataset of 211 large European MNEs headquartered in four Western European economies at the end of 2005.

Findings

Results show that firms adopting a regional orientation outperform MNEs with global strategic positioning. This positive relationship is less pronounced under conditions of industry dynamism and inter‐regional TMT diversity.

Originality/value

The study contributes to our understanding of whether and under what conditions MNEs benefit from adopting a regional as opposed to a global strategic posture.

Details

Multinational Business Review, vol. 21 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 23 September 2022

Ibrahim Kabir and Yazid Abdullahi Abubakar

The global economic crisis triggered by the coronavirus disease 2019 (COVID-19) has caused the closure of countless ethnic minority businesses (EMBs) worldwide, partly due to the…

Abstract

Purpose

The global economic crisis triggered by the coronavirus disease 2019 (COVID-19) has caused the closure of countless ethnic minority businesses (EMBs) worldwide, partly due to the public policy responses. This paper investigates whether EMBs’ entrepreneurial orientation (EO) mediates the impact of public policy responses to COVID-19 on their survival.

Design/methodology/approach

Utilizing institutional theory, the authors developed a novel conceptual framework that divides policy responses to COVID-19 into aggressive (imposing restrictions on movement, e.g. lockdowns) and less aggressive policy responses (not imposing restrictions on movement, e.g. social distancing). The authors then surveyed intra-regional EMBs, specifically businesses owned by ethnic minorities in the Kano and Katsina provinces of Nigeria, and analysed the data using structural equation modelling and analysis of variance (ANOVA).

Findings

The authors found that intra-regional EMBs in developing countries are very vulnerable to the public policy responses imposed by governments to curb COVID-19. Aggressive policy responses have a more significant negative effect on the survival of intra-regional EMBs than their less aggressive counterparts. Furthermore, the authors found that EO as a crisis response strategy significantly supports intra-regional EMBs in managing their vulnerability to the hostile institutional environment, reduces the adverse effect of public policy responses and stimulates their survival during the COVID-19 pandemic.

Originality/value

This paper contributes to the institutional theory of small and medium-sized enterprises (SMEs)/entrepreneurship and the literature on EMBs by showing the role of EO in mediating the effects of COVID-19 institutional policies on the survival of intra-regional EMBs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 9 November 2018

Hua Zhang, Gongming Qian, Lee Li and Zhengming Qian

The purpose of this paper is to differentiate between intra- and inter-regional diversification and explore how each affects firm performance. Existing studies show that both…

Abstract

Purpose

The purpose of this paper is to differentiate between intra- and inter-regional diversification and explore how each affects firm performance. Existing studies show that both intra- and inter-regional expansion provide benefits and incur costs but the findings are mixed. This study aims to explain the mixed findings.

Design/methodology/approach

This study uses secondary data and quantitative methodologies to test hypotheses.

Findings

Using data from 663 Canadian firms over a six-year period (2006–2011), the authors find that the relationship between firm performance and the depth and width of intra-regional expansion is nonlinear. The authors also find a sigmoid-shaped relationship between firm performance and inter-regional diversification, i.e., performance initially increases with home regional diversification, decreases with bi-regional diversification and finally increases again with multi-regional diversification.

Originality/value

The findings of this study shed light on the current debate on the merits of inter- and intra-regional diversification and have important theoretical and managerial implications.

Details

Management Decision, vol. 57 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 26 July 2007

Nicole Richter

This study provides a deeper insight into the performance effects of internationalization of the most international multinational enterprises (MNEs). Most MNEs perform their…

Abstract

This study provides a deeper insight into the performance effects of internationalization of the most international multinational enterprises (MNEs). Most MNEs perform their business activities within their home-regional block of the world – North America, Europe or the Asia-Pacific block. Whether these regional strategies pay off is explored by means of two analyses: first, the impact of internationalization in terms of the transnationality index, and second, the impact of foreign intra-regional sales on performance is examined. Results indicate that regional strategies smooth performance declines in the early stages of internationalization but also smooth performance increases during a phase of high-foreign expansion.

Details

Regional Aspects of Multinationality and Performance
Type: Book
ISBN: 978-0-7623-1395-2

Article
Publication date: 16 November 2015

Youjin Baik and Young-Ryeol Park

The purpose of this paper is to address the question of how regional diversification affects subsidiary staffing composition in multinational enterprises. Another important…

1800

Abstract

Purpose

The purpose of this paper is to address the question of how regional diversification affects subsidiary staffing composition in multinational enterprises. Another important objective of this study is to examine the effects of institutional distance, specifically regulative and normative distances, on foreign subsidiary staffing composition.

Design/methodology/approach

To estimate firm- and country-level parameters simultaneously, hierarchical linear modeling was conducted on a sample of 1,068 foreign subsidiaries of South Korean firms operating in 25 countries in 2014.

Findings

The results reveal that intra-regional diversification has a positive effect, whereas inter-regional diversification has a negative effect on local staffing in foreign subsidiaries. In addition, there is a positive association between informal distance (such as normative distance) and local staffing of foreign subsidiaries, while formal distance (such as regulative distance) is negatively related to local staffing of foreign subsidiaries.

Research limitations/implications

The cross-sectional nature of the data in this study may preclude examination of the relationships among institutional distance, institutional environment, and subsidiary staffing composition. The authors suggest that future researchers employ a longitudinal design to examine the effects on staffing composition of institutional distance and institutional environments over time.

Originality/value

The paper contributes to the literature on international human resources management by highlighting the importance of combining multilevel parameters to improve assessment of the importance of firms’ competitive strategy and institutional environments in local staffing in foreign subsidiaries.

Details

Management Decision, vol. 53 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 23 September 2022

Aparna Bhatia and Meenu Khurana

The paper aims to measure the nature and extent of international diversification followed by Indian companies over the period 2009–10 to 2017–18. The study also aims to assess the…

Abstract

Purpose

The paper aims to measure the nature and extent of international diversification followed by Indian companies over the period 2009–10 to 2017–18. The study also aims to assess the pattern of transition of companies to various strategies of international diversification.

Design/methodology/approach

Jacquemin and Berry’s (1979) entropy approach has been applied to measure the extent and assess the nature of international diversification. Further, the study deploys two-dimensional categorical framework advocated by Vachani (1991) and categorizes the firms into four international diversification strategies.

Findings

Larger proportion of companies in internationally low diversification (ILD) strategy reveals low extent of international diversification of Indian companies. The pattern of diversification depicts that the trend of moving forward is speeding up sequentially toward higher strategies of growth. Both the extent and pattern depict that the nature of diversification is shifting from relatedness to un-relatedness with transitions from intra-regions to inter-regions. The study confirms the applicability of eclectic theory and psychic distance Uppsala model in determining the preference of international diversification strategies and process of internationalization respectively in Indian firms.

Originality/value

The paper is first of its kind on account of several reasons. First, such a comprehensive evaluation of preferences for international diversification strategies has never been taken up with reference to emerging economies, especially India. Second, the paper is not static and does not limit itself only to the identification of favored strategies of Indian companies but also gauges the transitional behavior of Indian companies across different strategies at different points of time. In fact it is the first study to statistically research the applicability of psychic distance model in firms in emerging economy. Third, the results not only measure the quantum of international diversification but also assess the extent of relatedness and un-relatedness followed by Indian companies.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 6 February 2024

Yan Zhang

Much prior work involving director incentives and corporate behaviour has been focussing on their absolute dollar value or the intrinsic value and generated mixed findings…

Abstract

Purpose

Much prior work involving director incentives and corporate behaviour has been focussing on their absolute dollar value or the intrinsic value and generated mixed findings. Comparison theories, however, suggest that the relative value of an incentive may be the main drive for individual performance. This study attempts to investigate the role of director relative pay in promoting the board’s intervention with unrelated diversification decisions.

Design/methodology/approach

The analysis uses data from firms operating in more than one segment during the period from 1999 to 2019. Data were obtained from WRDS databases. Ordinary least squares (OLS) regression analysis and the two-stage system generalized method of moments (GMM) were run to test the hypotheses. To test the robustness of the findings, alternative proxies for the key independent variables were used in separate analyses.

Findings

The results support the hypothesis that unrelated diversification negatively impact firm performance, while higher director relative pay will help reduce unrelated business diversification. The absolute director pay, however, has no significant impact on corporate strategic choices. The results also highlight the moderating effect of director overcompensation. Director overcompensation will cancel out the impact of relative director pay on unrelated diversification.

Originality/value

This study takes a fresh theoretical perspective by framing the investigation using the dimensional comparison theory to address the single untended comparison framework in the director pay structure – the intra-individual framework. It is the first to investigate the role of director relative pay in corporate strategic choices. The findings support the contention that the relative value of the incentive is an important indicator of the effectiveness of the pay.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 13 February 2023

Zhunwoo Kim, Duk Hee Lee, Kyu-Sun Choi and Ohsung Kwon

This study aims to ascertain whether technological diversification (TD) enhances firm performance and explores the effect of patent portfolio balancing (PPB) on firm financial…

Abstract

Purpose

This study aims to ascertain whether technological diversification (TD) enhances firm performance and explores the effect of patent portfolio balancing (PPB) on firm financial performance and the moderating role of research and development (R&D) intensity.

Design/methodology/approach

This study empirically investigates a panel dataset based on 296 information and communications technology (ICT) small and medium-sized enterprises (SMEs) over 5 years, using a fixed-effects panel regression with time-lagged and moderating effects. Data are collected from a government survey and a firm and patent database.

Findings

The relationship between PPB and return on assets (ROA) is negative, indicating that TD in SMEs adversely affects firm performance. R&D intensity positively moderates the relationship between PPB and ROA, implying that follow-up R&D after creating new patents could weaken the negative relationship between TD and firm performance. This moderating effect only occurs when R&D intensity is sufficiently high, suggesting that high R&D firms could be more successful at diversification.

Practical implications

As TD consumes many resources, managers should set the optimal level of diversification and recognise the need for follow-up R&D for successful diversification.

Originality/value

This study conceptualises a unique theoretical framework for the PPB of ICT SMEs, revealing the moderating role of R&D intensity in changing the negative influence of PPB on firm performance.

Details

Management Decision, vol. 61 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

1 – 10 of 705