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 language | English |
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Pages (from-to) | 337-352 |
Number of pages | 16 |
Journal | Long Range Planning |
Volume | 47 |
Issue number | 6 |
Early online date | 21 Aug 2013 |
DOIs | |
Publication status | Published - Dec 2014 |