GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES

Abstract Geographical diversification is a rare occurrence in Indonesia. Firms may have grown accustomed to the era prior to international trade liberalization and are therefore, home market-oriented. Using the data of 56 Indonesian multinational enterprises (MNEs) over the period of 2013 to 2019, t...

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Main Author: Utami, Almaida
Format: Final Project
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/52612
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Institution: Institut Teknologi Bandung
Language: Indonesia
id id-itb.:52612
spelling id-itb.:526122021-02-19T15:18:28ZGEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES Utami, Almaida Indonesia Final Project Geographical Diversification, Firm Performance, Indonesia, Multinational Enterprises. INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/52612 Abstract Geographical diversification is a rare occurrence in Indonesia. Firms may have grown accustomed to the era prior to international trade liberalization and are therefore, home market-oriented. Using the data of 56 Indonesian multinational enterprises (MNEs) over the period of 2013 to 2019, this paper examines the impact of geographical diversification on firm performance. Contrary to expectations, the findings infer that geographically focused MNEs realize superior performance over geographically diversified MNEs. Low international experience, inefficient investments and costs relating to governance are the proposed causes of this result. Control measures were also included in this study; firm size and leverage significantly impacts firm performance however age does not. text
institution Institut Teknologi Bandung
building Institut Teknologi Bandung Library
continent Asia
country Indonesia
Indonesia
content_provider Institut Teknologi Bandung
collection Digital ITB
language Indonesia
description Abstract Geographical diversification is a rare occurrence in Indonesia. Firms may have grown accustomed to the era prior to international trade liberalization and are therefore, home market-oriented. Using the data of 56 Indonesian multinational enterprises (MNEs) over the period of 2013 to 2019, this paper examines the impact of geographical diversification on firm performance. Contrary to expectations, the findings infer that geographically focused MNEs realize superior performance over geographically diversified MNEs. Low international experience, inefficient investments and costs relating to governance are the proposed causes of this result. Control measures were also included in this study; firm size and leverage significantly impacts firm performance however age does not.
format Final Project
author Utami, Almaida
spellingShingle Utami, Almaida
GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES
author_facet Utami, Almaida
author_sort Utami, Almaida
title GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES
title_short GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES
title_full GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES
title_fullStr GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES
title_full_unstemmed GEOGRAPHIC DIVERSIFICATION AND FIRM PERFORMANCE: A STUDY OF INDONESIAN MULTINATIONAL ENTERPRISES
title_sort geographic diversification and firm performance: a study of indonesian multinational enterprises
url https://digilib.itb.ac.id/gdl/view/52612
_version_ 1822001285288689664