Performance Implications of MNEs' Diversification Strategies and Institutional Distance
Article first published online: 29 AUG 2012
© 2012 Wiley Periodicals, Inc.
Thunderbird International Business Review
Volume 54, Issue 5, pages 667–681, September/October 2012
How to Cite
Chao, M. C.-H., Kim, S. H., Zhao, H. and Hsu, C.-C. (2012), Performance Implications of MNEs' Diversification Strategies and Institutional Distance. Thunderbird Int'l Bus Rev, 54: 667–681. doi: 10.1002/tie.21492
- Issue published online: 29 AUG 2012
- Article first published online: 29 AUG 2012
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.