Intra-regional sales, product diversity, and the performance of merchandising multinationals
This study examines the relationship between intra-regional sales, product diversity, and performance of 45 merchandising firms using data from 1997 to 2003. The interaction effects between product diversity and intra-regional sales on performance are explored, using a curvilinear relationship. The analysis integrates three main theories, namely the resource-based view, transaction costs, and organization learning theory. The models measuring a firm's performance by return on assets (ROA) and return on sales (ROS) show that at high levels of intra-regional sales, small levels of product diversity can generate greater return to a firm but high levels of product diversity may hurt a firm's performance. Higher levels of intra-regional sales tend to improve a firm's performance and enhance the impact of product diversity on performance.
Year of publication: |
2007
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Authors: | Sukpanich, Nessara ; Rugman, Alan |
Published in: |
Journal of International Management. - Elsevier, ISSN 1075-4253. - Vol. 13.2007, 2, p. 131-146
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Publisher: |
Elsevier |
Keywords: | Regional Multinationality Performance Product diversity Merchandise Retail |
Saved in:
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