Work

The relationship between product and international diversification: The role of experience

Year: 2014

Type: article

Abstract: We establish prior diversification experience as a key determinant of the relationship between growth of product and international diversification. Prior diversification experience allows firms to overcome short‐run constraints on simultaneous diversification growth imposed by the difficulty to transfer tacit knowledge, ambiguous competencies, and limited absorptive capacity. Studying U.S. and European firms, we find a positive relationship between growth in product and international scope for firms with high and a negative one for those with little prior diversification experience. Further, we find that product diversification experience has greater impact than international diversification experience . Copyright © 2014 John Wiley & Sons, Ltd.

Source: Strategic Management Journal

DOI: 10.1002/smj.2296

Authors: Michael C. J. Mayer, Christian Stadler, Julia Hautz

Institutions: University of Bath, University of Warwick, Universität Innsbruck

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: Oesterreichische Nationalbank

Award: G1405039275