Market Concentration versus Market Diversification and Internationalization: Implications for MNE Performance

Abstract

Investigates the influence of market concentration, market diversification and internationalization strategies on the performance of multinational enterprises (MNEs). Using a sample of 450 large, medium and small MNEs, and three alternative definitions of market concentration and market diversification, results indicate that market diversification strategy produces better performance results for MNEs than market concentration strategy. In addition, MNEs using market concentration‐low internationalization strategy performed better than those using market concentration‐high internationalization strategy, and MNEs using market diversification‐low internationalization strategy performed better than those using market diversification‐high internationalization strategy. Discusses implications of the study′s findings for improved MNE performance.