Effects of diversification strategies on US restaurant firms' performance

Kyung Ho Kang, Seoki Lee

Research output: Contribution to journalArticle

5 Scopus citations


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.

Original languageEnglish (US)
Pages (from-to)807-831
Number of pages25
JournalTourism Economics
Issue number4
Publication statusPublished - Aug 1 2015


All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Tourism, Leisure and Hospitality Management

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