International Diversification and Firm Performance : The Moderating Role of Ownership Structure
Type
conference paper
Date Issued
2011-11-06
Author(s)
Abstract
Previous research found mixed empirical results of the international diversification-performance relationship (i.e., S-shaped and inverted U-shaped). Our study develops a theoretical framework to address this inconsistency in the literature. Specifically, we propose that multinational enterprises' (MNEs) ownership structure (i.e., public vs. private) moderates the effect of international diversification on firm performance. Since previous research found that the possession of certain assets, such as financial and human capital, might be driving superior international performance, we propose that public MNEs may be able to outperform private MNEs, especially at higher levels of international diversification, because of their superior access to financial capital markets and experienced top managers.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Strategies for a Multi-Polar World
Publisher
SMS Strategic Management Society
Publisher place
Chicago IL
Event Title
31st Strategic Management Society (SMS) Annual International Conference
Event Location
Miami, FL
Event Date
06.-09.11.2011
Subject(s)
Division(s)
Eprints ID
205855