Home Country Environments, Corporate Diversification Strategies, and Firm Performance

Abstract

This study reexamines the relationships between corporate diversification strategies and firm performance and suggests that these relationships are related to home country environments. We examined two environmental aspects: factors that facilitate transformational activities and institutions that foster transactional activities. Using a sample of firms from six Western European countries, we found support for the study's central proposition, that home country environment is an important component in the study of corporate diversification strategies.