The Role of Territorial Coverage and Product Diversification in the Multinationality-Performance Relationship

Deskripsi

This article introduces additional fine-grained distinctions to the study of the multinationality-performance relationship, such as territorial coverage and product diversification. It shows that the territorial scope covered by the firm makes a substantial difference to the relationship between multinationality and performance. In addition, the effect of multinationality on performance can sometimes be outweighed by product diversification. The path of international expansion is a much more complex process than is shown by existing studies. The results of this study suggest three generic strategies for international expansion with which an MNE can increase its performance.