GEOGRAPHIC OPPORTUNITY, PRODUCT VARIATION AND
THE ORGANIZATION PERFORMANCE OF JAPANESE BUSINESSES
Department of Management of Organizations
Hong Kong University of Science and Technology
Clear Water These types of, Kowloon HONG KONG
Tel: (852) 2358-7743
Fax: (852) 2335-5325
E-mail: [email protected] hk
PAUL W. BEAMISH
Richard Ivey School of Business
College or university of Traditional western Ontario
Greater london, ON CANADA N6A 3K7
Tel: (1-519) 661-3237
Fax: (1-519) 661-3700
E-mail: [email protected] uwo. ca
This analysis was supported by a Interpersonal Sciences and Humanities Analysis Council of Canada Grant (# XXXX), and by the Asian Managing Institute at the University of Western Ontario. This manuscript benefited coming from comments received from seminar participants on the Richard Ivey School of Business, The Hong Kong University of Technology and Technology, and the Fisher College of Business. We wish to appreciate Ayako Kira, Jo Jo Lam, Jimmy Miyoshi and Nancy Suzuki for assistance in data collection and coding.
Keywords and phrases: Geographic range, multinationality, corporate and business performance Running Head: Geographic Scope and satisfaction
GEOGRAPHIC RANGE, PRODUCT DIVERSITY AND
THE CORPORATE PERFORMANCE OF JAPANESE ORGANIZATIONS
The analysis extends exploration on the geographic scope, item diversification and performance relationship by exploring both antecedents and consequences of geographic range. In so doing, this addresses a fundamental criticism from the geographic scope-performance relationship; particularly, that the noticed positive romance between geographic scope and gratification is unwarranted because it is the possession of amazing assets that are the foundation of superior efficiency, not expansion into foreign markets per se. We tested the research style with data on the company performance of 399 Japanese manufacturing organizations. In the Part Least Pieces analyses accustomed to examine the study's half a dozen main hypotheses, we show that geographic scope was positively connected with firm success, even when the competing effect of proprietary property on organization performance was considered. Additional, we find that performance had not been related to the extent of product diversity; although expense levels in rent-generating, proprietary assets were related to the extent of product diversity.
An important issue concerning the internationalization of a firm involves the partnership between geographic scope and satisfaction. This question is particularly prominent in a globe in which multinational enterprises (MNEs) are accounting for larger and larger stocks of worldwide production (UNCTAD, 1997). Progressively, managers are being told to increase the firm's geographic scope, most probably to increase it is competitiveness and profitability. We all explore this issue of geographic scope, understood to be the worldwide extent of any firm's operations, and corporate functionality, by examining the worldwide experiences of Japanese production firms. Study in tactical management and international business has addressed the issue of geographic scope and performance in several techniques, but with a common objective вЂ“ to identify the size of the relationship involving the two. In general, the general opinion in the books is that (1) international diversification decreases the variability, or risk, of the firm's revenue stream (Rugman, 1979; Hisey and Caves, 1985; Ellie, Hwang and Burgers, 1993), and (2) geographic scope is favorably, although not automatically linearly, relevant to performance (Beamish and daCosta, 1984; Tallman and Li, 1996; Hitt, Hoskisson and Kim, 1997). However , a persistent criticism is that the discovered relationship between geographic range and performance is usually spurious. For instance of this brand of critique, Dess et approach. (1995) deal geographic opportunity is certainly not related to efficiency; rather, it is the possession of private assets вЂ“ which is the impetus to foreign direct investment вЂ“ that is the greatest source of...
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