IDEAS home Printed from https://ideas.repec.org/a/pal/buseco/v49y2014i2p104-113.html
   My bibliography  Save this article

Another Look at the Case for International Diversification

Author

Listed:
  • Mark J Purdy
  • Kuangyi Wei

Abstract

In an era of sluggish domestic growth, the business spotlight is once again turning to international diversification as a means to harness global growth opportunities and production efficiencies. However, the current empirical literature provides an inconsistent view of the effects of international diversification on business performance. We employ a panel-data analysis of the international revenues and assets of the 2011 Fortune Global 500 companies and examine their performance over the past 15 years. We find that the overall contribution of diversification to revenue growth, profitability and return on capital has been positive. However, the specific shape and timing of the impact can be complex. Accordingly, businesses need to be aware of the turning points for organizational gain as well as loss.

Suggested Citation

  • Mark J Purdy & Kuangyi Wei, 2014. "Another Look at the Case for International Diversification," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 49(2), pages 104-113, April.
    • Handle: RePEc:pal:buseco:v:49:y:2014:i:2:p:104-113
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/be/journal/v49/n2/pdf/be201416a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/be/journal/v49/n2/full/be201416a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:buseco:v:49:y:2014:i:2:p:104-113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.