文章基本信息

标题：International Diversification, Product Strategy, And Firm Value:Evidence From Korea
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作者：Donseung Choi ; Eunho Cho
期刊名称：International Business & Economics Research Journal
印刷版ISSN：1535-0754
电子版ISSN：2157-9393
出版年度：2014
卷号：13
期号：6
页码：1551-1564
语种：English
出版社：The Clute Institute for Academic Research
摘要：Existing studies showed inconsistent results for the relationship between international diversification (ID) and firm value. Thus, we primarily examine whether each MNCs product strategy moderates the relationship between ID and firm value. The results show that MNCs product strategy moderates the relationship between ID and firm value as measured by Tobins Q. Specifically, a positive relationship exists between ID and firm value in the firm group pursuing a cost leadership strategy, whereas a negative relationship exists between the same variables in the firm group pursuing a differentiation strategy, suggesting that the strategic fit between product strategy and ID is likely an important factor in the relationship between ID and firm value. Our results remain robust after conducting sensitivity analyses using the price-to-book value (PBR) ratio and individual components of composite ID measures. Accordingly, we conclude that a cost leadership strategy of Korean MNCs is more likely to have a competitive advantage in a foreign market than a differentiation strategy. This study primarily contributes to the literature on ID in that it provides the first evidence on the relationship between ID and firm value that takes into account an MNCs product strategy using the strategic fit perspective .
关键词：International Diversification;Firm Value;Product Strategy;Korean MNCs