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What is S-Curve of International Diversification about?

The study proposes a theoretical framework examining the relationship between multinationality and firm performance, revealing a horizontal S-shaped relationship based on data from 1,489 Japanese firms over 12 years. It highlights that while geographic expansion initially leads to performance gains, excessive internationalization can result in declining returns due to increased costs and complexities. The findings emphasize the importance of intangible assets, such as technology and advertising, in enhancin

Author

samiee.mehdi

Language

EN