Exploring the Relationship between International Expansion and Firm Performance in Diversified Firms

Abstract

This study investigates the complex relationship between international expansion and firm performance within diversified firms. Drawing upon insights from international business literature, strategic management, and diversification theory, the research examines how international expansion strategies influence the overall performance outcomes of diversified firms operating in multiple markets and industries. Through a mixed-methods approach combining quantitative analysis and qualitative case studies, the study explores the drivers, mechanisms, and contingencies underlying the relationship between internationalization and firm performance in diversified contexts. It considers factors such as market selection, entry mode choices, resource allocation, and strategic fit across business units to assess the impact of international expansion on diversified firms' profitability, growth, and risk exposure. Moreover, the research investigates how variations in industry dynamics, competitive environments, and institutional factors shape the performance implications of international diversification strategies. The findings contribute to a deeper understanding of the trade-offs and synergies associated with international expansion in diversified firms, and offer insights for managers and decision-makers seeking to optimize their internationalization strategies to enhance overall firm performance and competitiveness in a globalized economy.