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Regional diversification and firm performance


  • Gongming Qian

    (The Chinese University of Hong Kong, Hong Kong, PRC)

  • Lee Li

    (York University, Canada)

  • Ji Li

    (Hong Kong Baptist University, Hong Kong)

  • Zhengming Qian

    (Xiamen University, Xiamen, PRC)


This study examines how regional diversification affects firm performance. The results indicate that regional diversification has linear and curvilinear effects on firm performance. Regional diversification enhances firm performance linearly up to a certain threshold, and then its impact becomes negative. The results also show that firms of developed countries maximize their performance when they operate across a moderate number of developed regions and a strictly limited number of developing regions. This explains why internationalization by most international firms is regional rather than global. Journal of International Business Studies (2008) 39, 197–214. doi:10.1057/palgrave.jibs.8400346

Suggested Citation

  • Gongming Qian & Lee Li & Ji Li & Zhengming Qian, 2008. "Regional diversification and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 197-214, March.
  • Handle: RePEc:pal:jintbs:v:39:y:2008:i:2:p:197-214

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    References listed on IDEAS

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