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International diversification and performance: The mediating role of implementation

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  • Brock, David M.
  • Yaffe, Tal

Abstract

In this paper, we investigate the role of implementation in the effectiveness of international diversification strategies. Our approach contains several advances intended to contribute to the internationalization-performance research stream. First, we separate international diversification into two components: a growth component by which the firm moves into selected overseas markets; and an implementation component by which the firm tailors its offerings and managerial practices to international contexts. Whereas most recent research has investigated the internationalization/growth issues, we pay attention to implementation. Our theory presents the implementation variables mediating the effect of internationalization on performance. We also broaden the scope of enquiry by using a more dynamic measure of firm performance. Our theory building and testing first address these general issues and then focus on the use of a key implementation variable, namely the use of partner leverage, in globalizing law firms.

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  • Brock, David M. & Yaffe, Tal, 2008. "International diversification and performance: The mediating role of implementation," International Business Review, Elsevier, vol. 17(5), pages 600-615, October.
    • Handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:600-615
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