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Multinationality, global market diversification, and risk performance for the largest U.S. firms

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  • Qian, Gongming
  • Li, Ji

Abstract

This article analyzes both geographic scale and scope of foreign operations for the largest U.S. firms and especially their strategic combinations by relating to the risk of profits. The test results indicate that the combination of high geographic scale and medium geographic scope of foreign operations outperformed other strategic combinations. This particularly suggests that the heavy or light geographic scope of foreign operations may possibly cause a downturn in the risk performance. The implication is that firms preparing themselves for overseas activities should consider the use of this strategic combination.

Suggested Citation

  • Qian, Gongming & Li, Ji, 1998. "Multinationality, global market diversification, and risk performance for the largest U.S. firms," Journal of International Management, Elsevier, vol. 4(2), pages 149-170, October.
    • Handle: RePEc:eee:intman:v:4:y:1998:i:2:p:149-170
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    2. Geleilate, José-Mauricio G. & Magnusson, Peter & Parente, Ronaldo C. & Alvarado-Vargas, Marcelo J., 2016. "Home Country Institutional Effects on the Multinationality–Performance Relationship: A Comparison Between Emerging and Developed Market Multinationals," Journal of International Management, Elsevier, vol. 22(4), pages 380-402.
    3. Boehe, Dirk Michael & Jiménez, Alfredo, 2016. "How does the geographic export diversification–performance relationship vary at different levels of export intensity?," International Business Review, Elsevier, vol. 25(6), pages 1262-1272.
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    5. Caroline T Witte & Martijn J Burger & Elena I Ianchovichina & Enrico Pennings, 2017. "Dodging bullets: The heterogeneous effect of political violence on greenfield FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 862-892, September.
    6. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "LOCALISATION DES ACTIVITeS DE R D DES FIRMES MULTINATIONALES, MODES D’ORGANISATION EN ReSEAUX ET TRANSFERT TRANSNATIONAL DES CONNAISSANCES : UN CADRE D’ANALYSE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
    7. Eduardsen, Jonas & Marinova, Svetla, 2020. "Internationalisation and risk: Literature review, integrative framework and research agenda," International Business Review, Elsevier, vol. 29(3).

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