{'fraction_non_alphanumeric': 0.014883720930232559, 'fraction_numerical': 0.0, 'mean_word_length': 5.987012987012987, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Geographic diversification, product diversification, and firm cash flow volatility: the moderating effect of firm dynamic capability

Abstract Literature is largely inconclusive on the effects of geographic diversification and production diversification on firm performance. This impedes the understanding of diversifications and hinders the decision-making process in global practice. Further, performance indicators in the literature are mainly constrained to the returns aspect of the firm. Risk side factors such as the volatility of cash flow are largely neglected. This paper explores the inconclusive pattern of diversifications from the perspectives proposed by resource-based theories and dynamic capability theories. It examines how firm capability dichotomizes the relationships between diversifications and firm cash flow volatility. Results confirm that capability the roles of both geographic and product diversifications. A high capability is a necessary condition by which diversification strategies by themselves, or their joint effort, can benefit the firm.