The Evidence and Gap about the Relationship between International Diversification and Performance

摘要

There are many scholars who believe that there is a positive correlation relationship between international diversification and firm performance. However, some scholars have found that international diversification has a negative, U-shaped, inverted U-shaped and S-type relationship with firm performance. The reason for this is that the impact of international diversification on financial performance is a complex process, and knowledge acquired from international markets does not directly affect corporate financial performance, but rather has an impact on product innovation and process innovation or capability enhancement. Therefore, further research can explore the impact of international diversification on innovation, or examine the intermediary mechanism between international diversification and performance.