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Corporate strategy in a small open economy: reducing product diversification while increasing international diversification

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  • Bengtsson, Lars

Abstract

This study has investigated the changes in corporate strategy and performance in 20 large Swedish MNC's between 1985, 1994 and 1998. It has found a strong pattern of product focusing, increased internationalisation, and a strong increase in accounting-based performance. This development seems to be contrary to former empirical evidence, that international diversification pays off better for more product diversified firms than for less product diversified. This might be due to a country effect; Swedish MNC's having substantial international experience might have created unique internationalising capabilities compared to many other countries' large firms.

Suggested Citation

  • Bengtsson, Lars, 2000. "Corporate strategy in a small open economy: reducing product diversification while increasing international diversification," European Management Journal, Elsevier, vol. 18(4), pages 444-453, August.
    • Handle: RePEc:eee:eurman:v:18:y:2000:i:4:p:444-453
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    Citations

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    Cited by:

    1. Gabrielsson, P. & Gabrielsson, M., 2004. "Globalizing internationals: business portfolio and marketing strategies in the ICT field," International Business Review, Elsevier, vol. 13(6), pages 661-684, December.
    2. López Zapata, Esteban & García Muiña, Fernando Enrique & García, Susana María, 2019. "Analysing the relationship between diversification strategy and firm performance: the role of the economic cycle," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    3. Manohar Singh & Ike Mathur & Kimberly C. Gleason, 2004. "Governance and Performance Implications of Diversification Strategies: Evidence from Large U.S. Firms," The Financial Review, Eastern Finance Association, vol. 39(4), pages 489-526, November.
    4. repec:aal:abbswp:11-15 is not listed on IDEAS
    5. Elitsa R. Banalieva & Ravi Sarathy, 2011. "A Contingency Theory of Internationalization," Management International Review, Springer, vol. 51(5), pages 593-634, October.
    6. Winfried Ruigrok & Wolfgang Amann & Hardy Wagner, 2007. "The internationalization-performance relationship at Swiss firms: A test of the S-shape and extreme degrees of internationalization," Management International Review, Springer, vol. 47(3), pages 349-368, June.
    7. Mona Parsaei & Davood Askarany & Mahtab Maleki & Ali Rahmani, 2024. "Risk Management in Product Diversification: The Role of Managerial Overconfidence in Cost Stickiness—Evidence from Iran," Risks, MDPI, vol. 12(10), pages 1-21, September.

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