| This study examines the linear, curvilinear and interactive performance effects of product diversification, international market diversification, and international operations diversification. It adopts a pooled cross-sectional and time-series methodology. Data come from the U.S. computer and peripheral industry over a six-year time period (1991-1996). The study uses three different regression analyses (OLS, LSDV and EC) to test the hypotheses. Empirical findings indicate an inverted U-shaped relationship between international market diversification and firm performance, a positive linear relationship for international operations diversification, and a negative linear relationship for product diversification. International market and product diversification interact positively with performance, as do international market and international operations diversification, while international operations and product diversification interact negatively. |
