Resource Allocation, Level of International Diversification, and Firm Performance

Read this introduction to a resource-based approach toward international business that highlights topics like transaction costs theory and analytical models.

Methodology

Sample

The sample consisted of 102 manufacturing firms for the period of 1976-2009. The initial sample size is 1730. Data is pulled from both COMPUSTAT annual and COMPUSTAT segment database. The segment database provides information regarding the geographic segments of the operations of each firm. The descriptive statistics and correlation matrix are given in Table 1 and 2.