Effects of international diversity and product diversity on the performance of multinational firms

Stephen Tallman, Jiatao Li

Research output: Journal PublicationArticlepeer-review

800 Citations (Scopus)

Abstract

This study examined the relationships among international diversity, product diversity, and firm performance. For a sample of large American industrial multinational enterprises (MNEs), it showed a consistent quadratic relationship between product diversification and MNE performance but minimal performance differences across different measures of international diversity. Analysis of the interactions of international diversity and product diversity indicates a weak effect from increasing internationalization on the performance effect of product diversity.

Original languageEnglish
Pages (from-to)179-196
Number of pages18
JournalAcademy of Management Journal
Volume39
Issue number1
DOIs
Publication statusPublished - 1996
Externally publishedYes

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting (all)
  • Strategy and Management
  • Management of Technology and Innovation

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