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Geographical diversification as a predictor of MNC reputations in their home nations

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  • Thams, Yannick
  • Alvarado-Vargas, Marcelo J.
  • Newburry, William

Abstract

This study explores the link between geographical diversification and firms' home-nation reputations. We hypothesize a u-shaped relationship between geographic diversification and firm reputation and examine the moderating effect of the globalization level of a firm's home nation on this relationship. Results based on 403 of the world's largest firms support our hypotheses. Our study advances firm reputation research that has examined the link between strategy and reputation but has left unattended the reputational impact of firms' geographical expansion. Similarly, it contributes to the global strategy literature, which has extensively studied the financial implications of geographical diversification, but has devoted limited attention to intangible outcomes such as firm reputation.

Suggested Citation

  • Thams, Yannick & Alvarado-Vargas, Marcelo J. & Newburry, William, 2016. "Geographical diversification as a predictor of MNC reputations in their home nations," Journal of Business Research, Elsevier, vol. 69(8), pages 2882-2889.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2882-2889
    DOI: 10.1016/j.jbusres.2015.12.057
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    8. Ranjit Gupta & Maya Gianchandani & Cristian Mejia & Yogesh B. Gianchandani & Yuya Kajikawa, 2023. "Revealing Integrated Product and Geographical Diversification Trajectories in Multinational Pharmaceutical Enterprises," Businesses, MDPI, vol. 3(2), pages 1-20, April.
    9. Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas, 2018. "How Corporate Social Responsibility Helps MNEs to Improve their Reputation. The Moderating Effects of Geographical Diversification and Operating in Developing Regions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 355-372, July.
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