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Author:Kumar, M.V.S.
Title:The relationship between product and international diversification: the effects of short-run constraints and endogeneity
Journal:Strategic Management Journal
2009 : JAN, VOL. 30:1, p. 99-116
Index terms:management science
strategic planning
corporate strategy
diversification
international
growth
Freeterms:resource-based view
Language:eng
Abstract:This study explores the relationship between growth along the product and international dimension (here as: dim/s.) in the short run. It is argued among others that while the presence of fungible intangible resources and economies of scope possibly creates opportunities for a firm expansion along both dim/s., the effect of short- run constraints may lead to a trade-off and a negative association btw. the two dim/s. The propositions are tested through observing a sample of nearly 1.300 firms from 1993 to 1997. The results show strong evidence of endogeneity and a negative association btw. growth along the two dim/s.
SCIMA record nr: 268514
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