Corporate diversification, TMT experience, and performance: Evidence from German SMEs

Deeksha A. Singh, Ajai S. Gaur, Florian P. Schmid

Research output: Contribution to journalArticlepeer-review

41 Scopus citations

Abstract

We investigate the effect of product diversity and geographic diversity on the performance of SMEs, using an integration of the upper echelons literature with the product and geographic diversification literature. We propose an inverted U shaped relationship between product (geographic) diversification (PD/GD) and the performance of SMEs. We also propose that effect of PD and GD is contingent on one another and the TMT experience. We find that both PD and GD have an inverted U shaped relationship with the SME performance. Further, PD and GD interact positively to enhance each other's value in affecting firm performance. TMT experience also enhances the value of PD and GD for firm performance.

Original languageEnglish (US)
Pages (from-to)35-56
Number of pages22
JournalManagement International Review
Volume50
Issue number1
DOIs
StatePublished - 2010

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

Keywords

  • Geographic diversification
  • Germany
  • Performance
  • Product diversification
  • SMEs
  • Top management teams

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