Within-country product diversification and foreign subsidiary performance
نویسندگان
چکیده
Received: 1 March 2005 Revised: 22 November 2007 Accepted: 11 December 2007 Online publication date: 27 March 2008 Abstract We examine the product diversification of a multinational firm within each of its host-country markets. Based on a sample of 12,992 foreign subsidiaries of Japanese multinational firms, we find that higher levels of within-country product diversity led to higher subsidiary performance where the institutional strength of the local market was weak, and where a firm’s corporate product diversity level was high. Our study highlights the importance of examining a multinational firm’s strategy in its individual host-country markets, as influenced by the institutional characteristics of a host-country market and the corporate-level strategy of the multinational firm. Journal of International Business Studies (2008) 39, 706–724 doi:10.1057/palgrave.jibs.8400378
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