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Multinationality, global market diversification, and risk performance for the largest U.S. firms

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  • Qian, Gongming
  • Li, Ji

Abstract

This article analyzes both geographic scale and scope of foreign operations for the largest U.S. firms and especially their strategic combinations by relating to the risk of profits. The test results indicate that the combination of high geographic scale and medium geographic scope of foreign operations outperformed other strategic combinations. This particularly suggests that the heavy or light geographic scope of foreign operations may possibly cause a downturn in the risk performance. The implication is that firms preparing themselves for overseas activities should consider the use of this strategic combination.

Suggested Citation

  • Qian, Gongming & Li, Ji, 1998. "Multinationality, global market diversification, and risk performance for the largest U.S. firms," Journal of International Management, Elsevier, vol. 4(2), pages 149-170, October.
    • Handle: RePEc:eee:intman:v:4:y:1998:i:2:p:149-170
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    References listed on IDEAS

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    5. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "LOCALISATION DES ACTIVITeS DE R D DES FIRMES MULTINATIONALES, MODES D’ORGANISATION EN ReSEAUX ET TRANSFERT TRANSNATIONAL DES CONNAISSANCES : UN CADRE D’ANALYSE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
    6. Eduardsen, Jonas & Marinova, Svetla, 2020. "Internationalisation and risk: Literature review, integrative framework and research agenda," International Business Review, Elsevier, vol. 29(3).
    7. Muhammad Usman & Rizwan Shabbir & Ilyas Ahmad & Ahsan Zubair, 2022. "Host Countries’ Institutional Environment and Multinational Enterprises: Does Home-Host Developmental Status Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2640-2664, December.

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