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Within-country product diversification and foreign subsidiary performance

Author

Listed:
  • Andrew Delios

    (Department of Business Policy, National University of Singapore, Singapore)

  • Dean Xu

    (School of Business, The University of Hong Kong, Hong Kong)

  • Paul W Beamish

    (Richard Ivey School of Business, University of Western Ontario, London, Canada)

Abstract

We examine the product diversification of a multinational firm within each of its host-country markets. Based on a sample of 12,992 foreign subsidiaries of Japanese multinational firms, we find that higher levels of within-country product diversity led to higher subsidiary performance where the institutional strength of the local market was weak, and where a firm's corporate product diversity level was high. Our study highlights the importance of examining a multinational firm's strategy in its individual host-country markets, as influenced by the institutional characteristics of a host-country market and the corporate-level strategy of the multinational firm. Journal of International Business Studies (2008) 39, 706–724. doi:10.1057/palgrave.jibs.8400378

Suggested Citation

  • Andrew Delios & Dean Xu & Paul W Beamish, 2008. "Within-country product diversification and foreign subsidiary performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 706-724, June.
  • Handle: RePEc:pal:jintbs:v:39:y:2008:i:4:p:706-724
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