The international diversification-performance link in Spain: Does firm size really matter?

Benito‐Osorio, Diana; Colino, Alberto; Guerras‐Martín, Luis Ángel; Zúñiga‐Vicente, José Ángel

doi:10.1016/j.ibusrev.2015.09.004

Cited by 64 publications

(73 citation statements)

References 78 publications

(178 reference statements)

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“…The empirical studies that have confirmed the existence of a horizontal S-curve have been carried out in the most advanced countries (e.g. European Union, Japan, Switzerland and US) (Benito-Osorio et al, 2016), while researchers doubt that emerging market firms may have reached stage 3 (excessive internationalization) (Contractor et al, 2007) given that these firms are 'late internationalizers' (Gaur and Kumar, 2009).…”

Section: The Relationship Between International Diversification and Pmentioning

confidence: 99%

When geography matters: International diversification and firm performance of Spanish multinationals

Mendoza

Espinosa

Araya-Castillo

2020

BRQ Business Research Quarterly

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This paper studies how the nature and shape of the relationship between inter- national diversification (ID) and performance (P) may vary according to a firm’s geographical focus of internationalization. Using a sample of Spanish multinational firms for the 2004—2012 period we find an M-shaped relationship. However, significant differences are found when the different geographical foci of internationalization are considered. Strong support is found when firms adopt a regional focus (an inverted S-curve when the ID measure refers to the number of foreign countries and an M-curve when it refers to the size of the network of foreign sub- sidiaries), a biregional focus (an S-curve) and a semiglobal focus (an inverted S-curve but also an M-curve with foreign subsidiaries). These findings and their pattern suggest the critical impor- tance of the country of origin and the geographical focus of internationalization in explaining the relationship between ID—P. JEL CLASSIFICATION C33; F23; G15; L25

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Section: The Relationship Between International Diversification and Pmentioning

confidence: 99%

When geography matters: International diversification and firm performance of Spanish multinationals

Mendoza

Espinosa

Araya-Castillo

2020

BRQ Business Research Quarterly

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“…Thus, a series of factors and/or moderators have been reported to explain the different findings (Fleming & de Oliveira Cabral, 2016). For instance, the size and age of the company (Qian et al, 2008), intangible assets (Bausch & Krist, 2007), institutional environment (Estrin et al, 2008), human capital (Tuppura et al, 2008), geographical focus (Mendoza et al, 2020), and the company's internal and external competitive advantages (Bobillo et al, 2010) have been reported as variables influencing the relationship between international diversification and performance.…”

Section: International Diversification and Firm Valuementioning

confidence: 99%

International diversification, ownership structure and performance in an emerging market: evidence from Chile

Espinosa

Araya-Castillo

Bertín

et al. 2020

Economic Research-Ekonomska Istraživanja

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This research analyzes the impact of international diversification on the performance of Chilean exporting firms. Considering a sample of 47 companies listed on the Santiago Stock Exchange during the period 2003-2013, we found an international diversification discount. Secondly, when investigating the relationship between international diversification and performance, we found that they are related through an inverted U curve. Finally, we investigated how the ownership structure moderates the relationship between international diversification and performance, finding that the ownership concentration and pyramidal ownership positively impacts the performance of companies initiating international diversification strategies; and that the business groups' affiliation negatively impacts in the international diversificationperformance relationship.

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“…In a smaller manner, there are still approaches that have found linear negative in the relationship (e.g., Brewer, ; Geringer et al, ; Kotabe, Srinivasan, & Aulakh, ). These scholars suggest as the number of foreign countries in which a firm operates increases, international expansion can be expected to begin yielding incremental costs that exceed the firm's incremental benefits (Benito‐Osorio et al, ). However, several authors began to empirically identify a nonlinear international diversification–performance link.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…Interestingly, almost the entire literature on international diversification focuses on multinational corporations (MNC). This is especially important as there are virtually no empirical studies that have simultaneously examined the export behavior in a single sample of large firms and SME (Benito‐Osorio, Colino, Guerras‐Martín, & Zúñiga‐Vicente, ). Moreover, taking into account the SME makes a major contribution to an economy in terms of both the employment and the gross value added…”

Section: Introductionmentioning

confidence: 99%

Geographic export diversification: Determinants and their link with export performance

Sánchez

Colom

Cabasés

2018

Thunderbird Intl Bus Rev

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This study examines company-specific factors that may help explain the choice of an exportmarket strategy and explores how the selected export strategy contributes to explaining company's export performance (XP). Concentrating on a specific area within a broad spectrum of export behavior analysis has enabled us to examine these factors in greater depth. The results of our research, which was carried out using a sample comprising Spanish exporting companies, show a firm's size, a firm's age, and a firm's greater foreign ownership in its share capital are all determining factors for adopting a strategy geared to export-market diversification. A greater level of investment in R&D and greater international commitment are also important in this regard. We suggest reinforcing these two factors because there is evidence of a better XP among firms that have a wider range of foreign markets.

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The international diversification-performance link in Spain: Does firm size really matter?

Cited by 64 publications

References 78 publications

When geography matters: International diversification and firm performance of Spanish multinationals

When geography matters: International diversification and firm performance of Spanish multinationals

International diversification, ownership structure and performance in an emerging market: evidence from Chile

Geographic export diversification: Determinants and their link with export performance

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