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@article{Ren:2020:10.1108/MD-01-2018-0104,
author = {Ren, J and Tsai, H and Eisingerich, A},
doi = {10.1108/MD-01-2018-0104},
journal = {Management Decision},
pages = {16--38},
title = {The effect of Inter- and Intra- regional geographic diversification strategies on firm performance in China},
url = {http://dx.doi.org/10.1108/MD-01-2018-0104},
volume = {58},
year = {2020}
}

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TY  - JOUR
AB  - PurposeThis study theorizes and empirically examines the effects of intra- and inter-regional geographic diversification on firm performance in China. Furthermore, it investigates the key firm capabilities, which moderate the relationships between intra- and inter-regional geographic diversification and firm performance.Design/methodology/approach In this research, we studied 366 listed companies that invest in mainland China. We used the Taiwan Economy Journal database to construct a panel dataset from 2005 to 2014 and employed panel regression estimations as part of our empirical analyses.Findings We find that the effect of regional diversification on firm performance is significantly influenced by the contexts of the expansion. More specifically, the results show that the effect of intra-regional geographic diversification on firm performance takes the form of a U-shape relationship. In contrast, we find that inter-regional geographic diversification has a negative effect on firm performance. Firm marketing, R&D, and managerial capabilities moderate these relationships.Research limitations/implications First, the companies studied in this research are mainly Taiwanese manufacturers with investments in mainland China. Second, the current model can be expanded by exploring additional process explanations and moderators in future research. Practical implicationsAn important practical implication of this research is that when firms choose an intra-regional expansion strategy in China, they should adopt a moderate provincial diversification strategy in the invested region and reinforce its marketing capability to enhance firm performance. A careful consideration of a firm’s marketing, R&D and managerial capabilities is needed for successful regional diversification strategies in the China market.Originality/valueThe findings of this study contribute significantly to the existing literature on firms’ regional diversification. First, we explore and e
AU  - Ren,J
AU  - Tsai,H
AU  - Eisingerich,A
DO  - 10.1108/MD-01-2018-0104
EP  - 38
PY  - 2020///
SN  - 0025-1747
SP  - 16
TI  - The effect of Inter- and Intra- regional geographic diversification strategies on firm performance in China
T2  - Management Decision
UR  - http://dx.doi.org/10.1108/MD-01-2018-0104
UR  - http://hdl.handle.net/10044/1/66348
VL  - 58
ER  -

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