2003
DOI: 10.1057/palgrave.jibs.8400036
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The relationship between international diversification and performance in service firms

Abstract: International diversification is a growth strategy that has a major potential impact on firm performance. The relationship between international diversification and firm performance has been extensively studied in the international strategy literature. A major gap in the literature has been the non-existence of studies that have examined the effect of international diversification on performance in service firms. Previous studies that have tested the international diversification–performance relationship were … Show more

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Cited by 538 publications
(528 citation statements)
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“…In addition, because they are able to export to such countries, these companies must have well-structured internal activities, therefore, they can achieve superior economic and financial performance. Thus, in line with previous research (Lu e Beamish, 2001;Capar and Kotabe, 2003;Ruigrok and Wagner, 2004;Contractor, et al, 2008), the results of the present study reinforce that a greater investment and risk in internationalization can lead to a better performance.…”
Section: Final Considerationssupporting
confidence: 92%
“…In addition, because they are able to export to such countries, these companies must have well-structured internal activities, therefore, they can achieve superior economic and financial performance. Thus, in line with previous research (Lu e Beamish, 2001;Capar and Kotabe, 2003;Ruigrok and Wagner, 2004;Contractor, et al, 2008), the results of the present study reinforce that a greater investment and risk in internationalization can lead to a better performance.…”
Section: Final Considerationssupporting
confidence: 92%
“…by the inseparability of service provision and consumption. In particular, the factors influencing the crucial customer−provider relationship, such as language or cultural aspects, are considered more critical at services than at products (Capar, Kotabe, 2003). Furthermore, the intangibility of services results in challenges for consumers to compare offers in advance, as a simple inspection whether the service is of high or low quality is not possible (Bharadwaj, Varadarajan, Fahy, 1993).…”
Section: Resultsmentioning
confidence: 99%
“…Later studies in the 1980s and 1990s suggested the inverted J curve relationship between internationalization and business performance, underlining that there is a point after which the international spread of activities becomes a burden for existing company [11]. But in the same time the other group of scientists has found evidence in support of the thesis that the mentioned relationship is in form of U [3,27], while the third group came to the conclusion that the mentioned relationship is in inverted U form [14]. The most recent studies have resulted by the S form of the mentioned relationship [4,19].…”
Section: Literature Review and Hypothesismentioning
confidence: 99%