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Corporate Diversification, TMT Experience, and Performance

Author

Listed:
  • Deeksha A. Singh

    (National University of Singapore)

  • Ajai S. Gaur

    (Rutgers University)

  • Florian P. Schmid

    (Roland Berger Strategy Consultants)

Abstract

We investigate the effect of product diversity and geographic diversity on the performance of SMEs, using an integration of the upper echelons literature with the product and geographic diversification literature. We propose an inverted U shaped relationship between product (geographic) diversification (PD/GD) and the performance of SMEs. We also propose that effect of PD and GD is contingent on one another and the TMT experience. We find that both PD and GD have an inverted U shaped relationship with the SME performance. Further, PD and GD interact positively to enhance each other’s value in affecting firm performance. TMT experience also enhances the value of PD and GD for firm performance.

Suggested Citation

  • Deeksha A. Singh & Ajai S. Gaur & Florian P. Schmid, 2010. "Corporate Diversification, TMT Experience, and Performance," Management International Review, Springer, vol. 50(1), pages 35-56, February.
    • Handle: RePEc:spr:manint:v:50:y:2010:i:1:d:10.1007_s11575-009-0025-4
    DOI: 10.1007/s11575-009-0025-4
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