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dc.contributor.authorMuellner, Jakob
dc.contributor.authorWeiss, Martin
dc.date.accessioned2019-04-23T13:23:11Z
dc.date.available2019-04-23T13:23:11Z
dc.date.issued2016
dc.identifier.doi10.5465/ambpp.2016.13816abstract
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6253
dc.description.abstractWe augment diversification and internal capital market (ICM) frameworks with an institutional perspective, arguing that the effect of diversification on performance is dependent not only on the specific type of diversification (international or industry) but also on the specific context of a company in terms of its home market and the heterogeneity of its international investments. We believe the value of diversification is contingent on the distances between markets of a firm and we assume that different types of distance (economic, political, financial and cultural) have different effects on firm performance. Our findings suggest that industry diversification has a negative effect on MNE performance, but ICM may be used to counter this effect, especially in times of economic downturn in the domestic market. The effect of international diversification is insignificant and depends on the specific context of a company’s portfolio of international investments. In an exploratory attempt, we find that a politically heterogeneous portfolio of investments may result in a negative performance, whereas cultural distance seems to spur economic performance of the MNE.
dc.language.isoen
dc.subjectPolitical Boundaries
dc.subjectCultural Boundaries
dc.titleSpanning political and cultural boundaries: Diversification, internal capital market and performance
dc.identifier.journalAcademy of Management Annual Meeting Proceedings
dc.source.volume2016
dc.source.issue1
dc.contributor.departmentWU Vienna University of Economics and Business
dc.contributor.departmentUniversity of Erlangen-Nuremberg
vlerick.conferencedate05/08/2016-09/08/2016
vlerick.conferencelocationAnaheim, California, United States
vlerick.conferencename76th Annual Meeting of the Academy of Management
vlerick.knowledgedomainStrategy
vlerick.typeconfpresConference Proceeding
vlerick.vlerickdepartmentEGS
dc.identifier.vperid163047


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