International diversification and firm performance: Role of information technology investments

School of Business & Economics, Indiana University South Bend, South Bend, IN 46634, United States
Journal of World Business (Impact Factor: 2.62). 06/2007; 42(2):184-197. DOI: 10.1016/j.jwb.2007.02.004


The empirical studies to date have not found consistent support for the performance advantages of international diversification. One reason suggested by internalization theory is that leveraging firm specific assets is critical for enhancing performance from international diversification. We develop and empirically test the hypothesis that investment in information technology helps in leveraging firm specific assets across country borders and thereby contributes to enhanced performance from international diversification.

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Available from: Murali D. R. Chari, Oct 02, 2015
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    • "However, the study did not find the evidence that those benefits had resulted in business profitability. Chari et al. (2007) "
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    Scientific research and essays 08/2012; 7(38):3223-3242. DOI:10.5897/SRE11.955 · 0.45 Impact Factor
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    • "While some researches proved that investment in IT helps to enhance firm performance (Chari et al., 2007), in many other researches a significant relation between the use of information technology and organization performances was not found even in some cases negative relation was reported. These researchers believe that the cost of money and time for ineffectual IT is a significant cost for organizations (Wilkin, 2007). "
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    • "A special issue on this topic in Management International Review effectively demonstrates the continued interest of IB scholars in this research theme over the last 40 years. Work by Brock, Yaffe, and Dembovsky (2006), Chang and Wang (2007), Chari, Devaraj, and David (2007), Contractor, Kumar, and Kundu (2007), Hitt, Bierman, Uhlenbruck, and Shimizu (2006), Pangarkar (2008), and Thomas (2006) all go on to portray the critical importance of the topic to IB scholars and practitioners. "
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