Tarptautinės diversifikacijos poveikis įmonių veiklos rezultatams

Abstract

One of the ways to achieve a competitive advantage for a company is to pursue a diversification strategy. This strategy can take many forms, such as product or vertical diversification, but this paper centers on geographical diversification and, in particular, international diversification. The purpose of this paper is to identify the effect of international diversification on the performance of firms. The method used in this paper is literature analysis. Previous studies suggest that there is no consensus on the exact relationship between international diversification and firm performance. The impact of international diversification on firm performance is explained by several factors, for instance, differences in resources between countries, economies of scale, firm-specific advantages, the cost of managing a multinational corporation, etc. The shape of the relationship between the two variables found in relevant literature can range in complexity between linear and M-shaped, with the U-shaped, inverted U-shaped, and S-shaped types being the most common results. Given the lack of consensus on the general shape of the relationship, variables that have a moderating effect can be included in the study to examine the nature of the relationship between international diversification and firm performance in a specific context.