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Author: | Bowen, H.P. Wiersema, M.F. |
Title: | Foreign-based competition and corporate diversification strategy |
Journal: | Strategic Management Journal
2005 : DEC, VOL. 26:12, p. 1153-1171 |
Index terms: | globalization diversification strategy imports competition companies USA |
Language: | eng |
Abstract: | Since the mid-1980s U.S. domestic firms have faced significant increases in foreign-based (here as: f-bd.) (i.e.) import competition. This paper examines the impact of f-bd. competition in a firm's core business on both the level and nature of a firm's diversification strategy at the corporate level in a panel dataset of U.S. firms from 1985 to 1994. The findings provide the first evidence that increased f-bd. competition is indeed a statistically significant factor explaining both the reduced business-level diversity and the increased strategic focus of U.S. firms that has been widely perceived over the past two decades. |
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