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Global diversification strategy and corporate profit performance

Chan Kim, W., Hwang, Peter, Burgers, William P.·1989·Strategic Management Journal

Abstract

Based on a sample of 62 multinationals, this paper examines the impact of global diversification strategy on corporate profit performance by integrating the product and the international market dimensions of diversification. The results suggest that the corporate profit performance impact of related and unrelated diversification varies contingent upon the extent of a firm's international market diversification. One important lesson of this work is that both business strategy researchers and managers should review corporate diversification as having distinct yet interactive strategic dimensions—product and international market—and they would do well to recognize both the different and the joint effect of these dimensions on corporate profit performance.

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Metadata

Authors
Chan Kim, W., Hwang, P., & Burgers, W. P.
Venue
Strategic Management Journal
Publisher
Wiley
Published
1989-01
Volume
10
Issue
1
Pages
45-57
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
OpenAlex
W2139473829
Cited by
433
References
0
FWCI
27.47
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Global diversification strategy and corporate profit performance. https://app.cochat.ai/papers/10.1002/smj.4250100105
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Chan Kim, W., Hwang, P., & Burgers, W. P. (1989). Global diversification strategy and corporate profit performance. Strategic Management Journal. https://doi.org/10.1002/smj.4250100105

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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.