In this paper, we investigate the role of implementation in the effectiveness of international diversification strategies. Our approach contains several advances intended to contribute to the internationalization-performance research stream. First, we separate international diversification into two components: a growth component by which the firm moves into selected overseas markets; and an implementation component by which the firm tailors its offerings and managerial practices to international contexts. Whereas most recent research has investigated the internationalization/growth issues, we pay attention to implementation. Our theory presents the implementation variables mediating the effect of internationalization on performance. We also broaden the scope of enquiry by using a more dynamic measure of firm performance. Our theory building and testing first address these general issues and then focus on the use of a key implementation variable, namely the use of partner leverage, in globalizing law firms.
- International diversification