International diversification and performance: The mediating role of implementation

David M. Brock, Tal Yaffe

Research output: Contribution to journalArticlepeer-review

34 Scopus citations

Abstract

In this paper, we investigate the role of implementation in the effectiveness of international diversification strategies. Our approach contains several advances intended to contribute to the internationalization-performance research stream. First, we separate international diversification into two components: a growth component by which the firm moves into selected overseas markets; and an implementation component by which the firm tailors its offerings and managerial practices to international contexts. Whereas most recent research has investigated the internationalization/growth issues, we pay attention to implementation. Our theory presents the implementation variables mediating the effect of internationalization on performance. We also broaden the scope of enquiry by using a more dynamic measure of firm performance. Our theory building and testing first address these general issues and then focus on the use of a key implementation variable, namely the use of partner leverage, in globalizing law firms.

Original languageEnglish
Pages (from-to)600-615
Number of pages16
JournalInternational Business Review
Volume17
Issue number5
DOIs
StatePublished - Oct 2008
Externally publishedYes

Keywords

  • Implementation
  • International diversification
  • Law
  • Leverage
  • Performance

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