Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Intra- and inter-regional expansion: a nonlinear model

Intra- and inter-regional expansion: a nonlinear model The purpose of this paper is to differentiate between intra- and inter-regional diversification and explore how each affects firm performance. Existing studies show that both intra- and inter-regional expansion provide benefits and incur costs but the findings are mixed. This study aims to explain the mixed findings.Design/methodology/approachThis study uses secondary data and quantitative methodologies to test hypotheses.FindingsUsing data from 663 Canadian firms over a six-year period (2006–2011), the authors find that the relationship between firm performance and the depth and width of intra-regional expansion is nonlinear. The authors also find a sigmoid-shaped relationship between firm performance and inter-regional diversification, i.e., performance initially increases with home regional diversification, decreases with bi-regional diversification and finally increases again with multi-regional diversification.Originality/valueThe findings of this study shed light on the current debate on the merits of inter- and intra-regional diversification and have important theoretical and managerial implications. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Decision Emerald Publishing

Intra- and inter-regional expansion: a nonlinear model

Management Decision , Volume 57 (7): 13 – Jul 5, 2019

Loading next page...
 
/lp/emerald-publishing/intra-and-inter-regional-expansion-a-nonlinear-model-yRda8tLoqT

References (30)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0025-1747
DOI
10.1108/md-04-2017-0359
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to differentiate between intra- and inter-regional diversification and explore how each affects firm performance. Existing studies show that both intra- and inter-regional expansion provide benefits and incur costs but the findings are mixed. This study aims to explain the mixed findings.Design/methodology/approachThis study uses secondary data and quantitative methodologies to test hypotheses.FindingsUsing data from 663 Canadian firms over a six-year period (2006–2011), the authors find that the relationship between firm performance and the depth and width of intra-regional expansion is nonlinear. The authors also find a sigmoid-shaped relationship between firm performance and inter-regional diversification, i.e., performance initially increases with home regional diversification, decreases with bi-regional diversification and finally increases again with multi-regional diversification.Originality/valueThe findings of this study shed light on the current debate on the merits of inter- and intra-regional diversification and have important theoretical and managerial implications.

Journal

Management DecisionEmerald Publishing

Published: Jul 5, 2019

Keywords: Firm performance; Inter-regional diversification; Intra-regional diversification

There are no references for this article.