Globalization and Diversification Strategy: A Managerial Perspective

This study presents survey evidence about managerial views on how the processes of globalization affect managers’ strategic decisions regarding a firm’s international and product market scope. Our purpose is to assess whether managerial behaviors are consistent with theoretical predictions and whether managerial decisions about firm scope are consistent with the findings of recent empirical research. Our findings generally support those of academic research on the impacts of globalization on managerial decisions concerning firms’ strategic scope, but raise questions about findings to date on the nature of a relationship between product and international diversification and their impact on firm performance. Our findings serve as a check on the results of extant research and offer guidance for future research.