Effects of diversification strategies on US restaurant firms' performance

• Kang, Kyung Ho ^[1] ; Lee, Seoki ^[2]
  1. [1] Kyung Hee University

     Kyung Hee University

     Corea del Sur

     
  2. [2] Pennsylvania State University

     Pennsylvania State University

     Borough of State College, Estados Unidos

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 21, Nº. 4, 2015, págs. 807-831
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • Although diversification strategies in the US restaurant industry are actively implemented with strategic importance, research on the effects of diversification on firm value has been rare. This study investigates the individual effect of geographical diversification and brand diversification on firm value in the US restaurant industry context. Furthermore, to investigate the effects of diversification more comprehensively, this study examines whether or not brand diversification moderates the relationship between geographical diversification and the value of US restaurant firms. The study finds an insignificant effect of geographical diversification on firm performance, a negative effect of brand diversification on performance and a negative moderating effect of brand diversification on the geographical diversification–firm performance relationship.