Do Institutions Really Matter for the Relationship Between Diversification and Performance?: A Meta-Analytical Approach

Phillip Christopher Nell; Marc van Essen; Dominik Wagner; Joern Block; Ettore Spadafora

Do Institutions Really Matter for the Relationship Between Diversification and Performance? A Meta-Analytical Approach

Phillip Christopher Nell, Marc van Essen, Dominik Wagner, Joern Block, Ettore Spadafora

Research output: Contribution to conference › Paper › Research › peer-review

Abstract

Scholars have tried to explain different diversification patterns in different parts of the world through an institutions-based view of firm scope. This view’s claim is that the institutional context moderates the relationship between diversification and performance in such a way that diversification in developing and emerging markets is more profitable than in developed markets. However, empirical results are still inconclusive, it is unclear which institutional factors matter, and if institutional effects have become weaker over time. Using a meta-analytic approach based on 464 published and unpublished studies, we shed light on these issues. Our findings show that formal institutions matter more than informal ones but that their effect is becoming weaker. Thus, we contribute to the diversification literature and the institutions-based theory of firm scope.

Original language	English
Publication date	2016
Publication status	Published - 2016
Event	SMS Special Conference Hong Kong: Contextualizing Strategic Management in Asia: Institutions, Innovation and Internationalization - The Chinese University of Hong Kong, Hong Kong Duration: 10 Dec 2016 → 12 Dec 2016 https://www.strategicmanagement.net/hong-kong/overview/overview

Conference

Conference	SMS Special Conference Hong Kong
Location	The Chinese University of Hong Kong
Country/Territory	Hong Kong
Period	10/12/2016 → 12/12/2016
Internet address	https://www.strategicmanagement.net/hong-kong/overview/overview

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title = "Do Institutions Really Matter for the Relationship Between Diversification and Performance?: A Meta-Analytical Approach",

abstract = "Scholars have tried to explain different diversification patterns in different parts of the world through an institutions-based view of firm scope. This view{\textquoteright}s claim is that the institutional context moderates the relationship between diversification and performance in such a way that diversification in developing and emerging markets is more profitable than in developed markets. However, empirical results are still inconclusive, it is unclear which institutional factors matter, and if institutional effects have become weaker over time. Using a meta-analytic approach based on 464 published and unpublished studies, we shed light on these issues. Our findings show that formal institutions matter more than informal ones but that their effect is becoming weaker. Thus, we contribute to the diversification literature and the institutions-based theory of firm scope.",

author = "Nell, {Phillip Christopher} and Essen, {Marc van} and Dominik Wagner and Joern Block and Ettore Spadafora",

year = "2016",

language = "English",

note = "SMS Special Conference Hong Kong ; Conference date: 10-12-2016 Through 12-12-2016",

url = "https://www.strategicmanagement.net/hong-kong/overview/overview",

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TY - CONF

T1 - Do Institutions Really Matter for the Relationship Between Diversification and Performance?

T2 - SMS Special Conference Hong Kong

AU - Nell, Phillip Christopher

AU - Essen, Marc van

AU - Wagner, Dominik

AU - Block, Joern

AU - Spadafora, Ettore

PY - 2016

Y1 - 2016

N2 - Scholars have tried to explain different diversification patterns in different parts of the world through an institutions-based view of firm scope. This view’s claim is that the institutional context moderates the relationship between diversification and performance in such a way that diversification in developing and emerging markets is more profitable than in developed markets. However, empirical results are still inconclusive, it is unclear which institutional factors matter, and if institutional effects have become weaker over time. Using a meta-analytic approach based on 464 published and unpublished studies, we shed light on these issues. Our findings show that formal institutions matter more than informal ones but that their effect is becoming weaker. Thus, we contribute to the diversification literature and the institutions-based theory of firm scope.

AB - Scholars have tried to explain different diversification patterns in different parts of the world through an institutions-based view of firm scope. This view’s claim is that the institutional context moderates the relationship between diversification and performance in such a way that diversification in developing and emerging markets is more profitable than in developed markets. However, empirical results are still inconclusive, it is unclear which institutional factors matter, and if institutional effects have become weaker over time. Using a meta-analytic approach based on 464 published and unpublished studies, we shed light on these issues. Our findings show that formal institutions matter more than informal ones but that their effect is becoming weaker. Thus, we contribute to the diversification literature and the institutions-based theory of firm scope.

M3 - Paper

Y2 - 10 December 2016 through 12 December 2016

ER -