International Diversification: Effects on Innovation and Firm Performance in Product-Diversified Firms.

Hitt, Michael A.; Hoskisson, Robert E.; Kim, Hicheon

doi:10.2307/256948

Cited by 2,126 publications

(1,710 citation statements)

References 70 publications

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“…Contrary to some of the literature (i.e. Hitt et al, 1997), we don't find support for the argument of the positive link between R&D and firm performance. How and why a firm undertakes research and development should be made clear before the actual expenditure takes place.…”

Section: Discussioncontrasting

confidence: 99%

“…Thus, the success of an international firm is tied into the efficiency of benefiting the opportunities and implementing the know-how in a global market. Besides, the international diversification has implementations and positive repercussions on the extent of innovation experience that the firm is undertaking (Hitt et al, 1997). Therefore, increasing the shareholder wealth through international diversification is evidenced in a study encompassing West German corporations (Buhner, 1987).…”

Section: Resource-based View and Transaction Cost Theorymentioning

confidence: 99%

“…The firms' innovative frontier is constraint by some limits such as human resources, expenditures of research and development divisions, the fit between R&D divisions and the business units. Expectation of both low cost and quality products in the global market motivates and drives firms into a focus of research and development even more (Hitt et al, 1997). Some certain bundles of resources in a firm environment create advantage for business entity if the process of strategy formulation can estimate the price of such resources and deploy an optimum specialized set of resources (Lippman & Rumelt, 2003).…”

Section: Overview Of Conceptual Frameworkmentioning

confidence: 99%

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Resource Allocation, Level of International Diversification and Firm Performance

Bakay¹,

Elkassabgi²,

Moqbel³

2011

IJBM

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This paper investigates the threads between international diversification and firm performance, resource allocation to R&D and capital expenditure. The context of this study is a resource-based view and transaction costs theory. Firms that are going international, benefit from the resources available to them outside their home country as well as from the utilization of their core competencies in other countries. Regression models without interactive terms indicate that resource allocation significantly impacts firm performance. Capital expenditure is positively associated with return on assets, while research and development expenditure undermines the firm's performance. Analyses suggest that there is no thorough relation between international diversification and returns, regardless of using asset or sales diversification variables. The estimates of diversification variable are negative and insignificant in most models.

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Section: Discussioncontrasting

confidence: 99%

Section: Resource-based View and Transaction Cost Theorymentioning

confidence: 99%

Section: Overview Of Conceptual Frameworkmentioning

confidence: 99%

See 1 more Smart Citation

Resource Allocation, Level of International Diversification and Firm Performance

Bakay¹,

Elkassabgi²,

Moqbel³

2011

IJBM

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“…Kotabe [25] suggested that companies that are doing business internationally can improve their innovative capacity by being able to better utilize the wide range of resources available globally, that are often even not available at domestic firms. Hitt et al [26] also said that companies can promote innovation by using the specific advantages of different countries. Zahra et al [27] claimed that by exposing to various technological and regulatory environments in the process of their internationalization, companies in general enhance their competitive position and improve their innovative capabilities.…”

Section: Relationship Between Innovation and Internationalizationmentioning

confidence: 99%

Learning by internationalization: positive effects on innovation in Chinese companies

Zivlak

Ljubičić

et al. 2017

Teh. vjesn.

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Original scientific paper The purpose of this research is to analyse the relationship between innovation and internationalization in Chinese companies and to test presented research model. During the research process, 486 companies from China were analyzed and all four types, product, process, marketing and organizational innovations are proved to be positively influenced by internationalization. In addition to this, it is proved that for improvement of marketing and organizational innovation high-level of internationalization is highly recommended. What is more, this research has proved that direct contact with foreign customers is extremely important for having higher benefits of internationalization in the context of improvement of all four types of innovation. Keywords: Chinese company; Chinese market; innovation; internationalization Učenje internacionalizacijom: pozitivni efekti na inovacije u kineskim kompanijamaIzvorni znanstveni članak Svrha ovog istraživanja je analiza odnosa između inovacija i internacionalizacije, kao i testiranje prezentiranog modela istraživanja. Istraživanjem je obuhvaćeno 486 kompanija iz Kine i dokazano je da internacionalizacija pozitivno utječe na sva četiri tipa inovacija, i to proizvoda, procesa, marketinga i organizacije. Također je dokazano i da se za postizanje inovacija u području marketinga i organizacije naročito preporučuje tzv. internacionalizacija visoke razine. Istraživanje je također dokazalo da je direktni kontakt sa stranim kupcima od iznimnog značaja za ostvarivanje većih koristi od internacionalizacije u kontekstu unapređenja sva četiri tipa inovacija.

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“…Wang, Tsui & Xin, 2011). The age of a firm has also significant impact on OL, OI and OP (Hitt, Hoskisson & Kim, 1997;Jiménez-Jiménez & Sanz Valle, 2010). According to a study by Sørensen and Stuart (2000), experience and organizational competencies provided by age, help firms to develop their operations in a more efficient way, especially the operations related to innovation.…”

Section: Moderating Effect Of Company Type Size and Agementioning

confidence: 99%

Knowledge Management in Collaborative Manufacturing Food Companies Performances: Twin Impacts of Learning and Innovation

Jenatabadi¹,

Radzi²,

Azizan³

et al. 2016

MAS

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The purpose of this approach is to establish the twin impacts of organizational innovation (OI) with organizational learning (OL) in the relation between knowledge management (KM) and organizational performance (OP). 168 companies of manufacturing Food Company were chosen from Malaysia, Taiwan, China and path analysis is used to analyse the underlying hypotheses. The research framework under study contain four latent variables (OP; OL; KM; OI) and three observed indicators (firm type; firm size; firm age). Structural equation modelling include mediation and moderation analysis were used in this study. The obtained results support the literature regarding the relationship among these four constructs and prove that the combination of OI and OL is mediator in the linkage between KM and firm performance. Moreover, firm age, size and type are acting as moderators among the research latent variables. The introduced model can be consider as a basic framework for technology management modelling studies. Limitation and implications for future studies are discussed.

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International Diversification: Effects on Innovation and Firm Performance in Product-Diversified Firms.

Cited by 2,126 publications

References 70 publications

Resource Allocation, Level of International Diversification and Firm Performance

Resource Allocation, Level of International Diversification and Firm Performance

Learning by internationalization: positive effects on innovation in Chinese companies

Knowledge Management in Collaborative Manufacturing Food Companies Performances: Twin Impacts of Learning and Innovation

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