The Impact of Product Diversity on the Relationship Between Internationalization and Performance of Brazilian Multinational Companies
Keywords:Internacionalization, Performance, Product diversification, Role moderator
The aim of this study was to investigate the moderating role of product diversification in the relationship between internationalization and the performance of Brazilian multinational companies. This study used internationalization data collected in reports from Fundação Dom Cabral, financial data collected in the Economática database, in addition to secondary data from 33 Brazilian companies collected on the website of the Brazilian Securities and Exchange Commission (CVM). The work refers to an eight-year period (2010 to 2017), and used multiple linear regression with fixed effects and panel data. It was identified that the relationship between internationalization and performance of multinational Brazilian companies occurs in a U shape. Furthermore, a negative moderating role was identified in the relationship between product diversification and low-level internationalization, and a positive moderating effect on the performance of Brazilian companies internationalized with a high degree of product diversification. The present work innovated this theme for Brazilian literature by focusing on the moderating effect of product diversity. In addition, the article has implications for Brazilian multinational companies, as it can assist planning related to their international expansion, and also highlights that the beneficial effects of internationalization are not immediate; that the knowledge and experiences acquired in this process are important to improve its performance; and that after initial stages of the internationalization process, product diversification can help with an improvement in the performance of these companies.
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