Macro-competitive context and diversification: The impact of macroeconomic growth and foreign competition

Julia Hautz, Michael Mayer, Christian Stadler

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

This longitudinal study of large European firms (1993-2007) offers a conceptual model that explains how two key aspects of the macro-competitive environment, macroeconomic growth and foreign competition, shape product and international diversification. The results indicate that greater foreign competition reduces product diversification but fosters international diversification, while macroeconomic growth has a positive impact on product diversification and a negative one on international diversification. These findings suggest that managers have to set economy-wide, macro-competitive conditions alongside firm and industry-level considerations when making diversification strategy choices.

Original languageEnglish
Pages (from-to)337-352
Number of pages16
JournalLong Range Planning
Volume47
Issue number6
Early online date21 Aug 2013
DOIs
Publication statusPublished - Dec 2014

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