Work

Rethinking the performance implication of regional diversification: The interplay between intra- and inter-regional diversification

Year: 2025

Type: article

Abstract: This study explores how the levels of intra- and inter-regional diversification are associated with multinational enterprise (MNE) performance, both independently and in combination. I argue that the effects of intra- and inter-regional diversification are not linear, and that intra- and inter-regional diversification moderates each other’s effects on MNE performance. This study reveals that both intra- and inter-regional diversification exhibit an inverted U-shaped relationship with MNE performance, with the impact of inter-regional diversification being stronger than that of intra-regional diversification. The result also shows that MNEs with moderate levels of both intra- and inter-regional diversification outperform MNEs with different internationalization patterns. This study concludes that ‘balanced’ intra- and inter-regional diversification can be more crucial for achieving better firm performance rather than the degrees of intra- and inter-regional diversification.

Source: Journal of Business Research

DOI: 10.1016/j.jbusres.2025.115519

Author: Jong Min Lee

Institution: Yonsei University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,440

Funder: Yonsei University