Product Diversification and Market Value of Large International Firms: A Macroenvironmental Perspective

Qiu, Tianjiao

doi:10.1509/jim.14.0049

Cited by 18 publications

(14 citation statements)

References 61 publications

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“…O'Sullivan and McCallig (2012) Customer satisfaction Customer satisfaction has a positive impact on firm value. Qiu (2014) Product diversification Product diversification positively affects the firm's market value (Tobin's q). Qiu (2014) Product diversification Product diversification positively affects the firm's market value (Tobin's q).…”

Section: Sorescu Shankar Andmentioning

confidence: 99%

“…Kurt and Hulland (2013) Marketing expenditures Aggressive marketing spending has a more pronounced impact on firm value during the two-year post-offering period than any other period. Qiu (2014) Product diversification Product diversification positively affects the firm's market value (Tobin's q). Sridhar, Narayanan and Srinivasan (2014) Advertising Advertising spending has a positive impact on firm value.…”

Section: Hypothesesmentioning

confidence: 99%

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Marketing as an Investment in Shareholder Value

Hughes

Yan

et al. 2018

British J of Management

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We present resource-based and capability-based arguments of marketing investment intensity to offer a strategic view of marketing as an investment in shareholder value. We find that marketing investment intensity has a U-shaped quadratic effect on shareholder value creation (Tobin's q) that calls for marketing investment to be protected and increased, not surrendered. We show how marketing investments interact with investments in R&D, human capital and operations to reveal how strategic co-investments can alter the shareholder value of marketing. Finally, we show how competitive intensity and failings in the firm's investment productivity (its ability to convert investment expenditure into sales) point to malaise in the firm's own strategic architecture as a fault for perceived poor returns from marketing investments. Our findings suggest that marketing investment should not be scapegoated when its contributions to shareholder value are not as expected. When invested in strategically and in combination with other investments, marketing can unlock exciting improvements in shareholder value.

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Section: Sorescu Shankar Andmentioning

confidence: 99%

Section: Hypothesesmentioning

confidence: 99%

Marketing as an Investment in Shareholder Value

Hughes

Yan

et al. 2018

British J of Management

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“…As a growth policy or to adopt defensive responses to the continuous competitive pressures of globalization (VARANDARAJAN, 1986), companies have been adopting product diversification as a prudent choice (ELSAS, HACKETHAL, and HOLZHAUSER, 2010), based upon their resources and capabilities, either they are tangible or intangible (QIU, 2014).…”

Section: Business Diversificationmentioning

confidence: 99%

The Impact of Innovative Products in the Metallic Zinc Market Growth in Brazil

Furquim¹

2017

BBR

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Nowadays large international companies are deeply involved in activities and processes that may generate any kind of value to them, and play an important role in promoting global growth and development (MERDZANOVSKA, 2015). Phenomena such as the globalization and the internationalization of companies have been promoting a higher degree of competitiveness in different markets (KOVACS, MORAES, and OLIVEIRA, 2007). In that context innovation and application of new technologies play an important role (PRIEDE and PEREIRA, 2015), generating turbulences and dynamism, acting as vectors to increase competitiveness in various market segments (MEIRELLES, 2006;ZAHRA, SAPIENZA, and DAVIDSSON, 2006).Considering that scenario companies intensively aim at obtaining competitive advantage, taking into account the demand conditions, their own strategies and their competitors behavior (UTTERBACK

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“…Blesa and Ripollés, 2008;Liu et al, 2005;Swan and Allred, 2009). For example, in examining the effect of product diversification in an industry on international firms' market value, we need to be cautious about the potential simultaneous causality bias caused by the firms' market value on the degree of product diversification (Qiu, 2014).…”

Section: Causes Of Endogeneitymentioning

confidence: 99%

Assessing endogeneity issues in international marketing research

Jean

Deng

Kim

et al. 2016

International Marketing Review

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Purpose – Endogeneity is a potential threat to the validity of international marketing (IM) research. The purpose of this paper is to draw the attention of IM researchers to issues of endogeneity, to provide a comprehensive overview of the sources of endogeneity, and to discuss the statistical solutions. Design/methodology/approach – The authors conduct the research in two steps. In the first step, the authors review the nature and sources of endogeneity specifically in IM research. In the second step, the authors review 60 IM papers on endogeneity published in the period 1995-2014 and assess the current practice of addressing endogeneity in the IM literature. Findings – Sample selection bias and simultaneity are prevalent sources of endogeneity in IM research. Internationalization-performance relationship and innovation-export nexus are the two most frequently adopted models subject to potential endogeneity. Simply lagging the main independent variable is statistically flawed in dealing with endogeneity despite its popularity in IM research. Research limitations/implications – First, a careful choice and application of methods are critical when addressing endogeneity. Second, the authors suggest the employment of multiple study methods to address endogeneity robustly. Third, to prevent or solve endogeneity in structural equation modeling, researchers may either collect data on independent and dependent variables from different respondents or employ a two-stage least squares approach. Finally, it is helpful to design dedicated models to prevent proactively potential endogeneity a priori. Originality/value – The contribution of this study is twofold. First, it is the first in the literature to discuss the endogeneity issue specifically in IM research. In particular, the study elaborates the origins and consequences of the three most frequently confronted types of endogeneity in IM research. Second, the authors assess the four major methods of addressing endogeneity in IM research with a systematic discussion of the literature from the last two decades. The authors offer suggestions on how to minimize endogeneity in model design and empirical implementation for future IM research.

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Product Diversification and Market Value of Large International Firms: A Macroenvironmental Perspective

Cited by 18 publications

References 61 publications

Marketing as an Investment in Shareholder Value

Marketing as an Investment in Shareholder Value

The Impact of Innovative Products in the Metallic Zinc Market Growth in Brazil

Assessing endogeneity issues in international marketing research

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