IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v12y1991i3p187-199.html
   My bibliography  Save this article

A longitudinal study of the cause and consequences of changes in diversification in the U.S. pharmaceutical industry 1977–1986

Author

Listed:
  • Charles W. L. Hill
  • Gary S. Hansen

Abstract

The paper hypothesizes that diversification by firms based in the pharmaceutical industry during the 1977‐86 time period was primarily undertaken to reduce the risks associated with being dependent upon a technologically dynamic environment. Consistent with this non‐efficiency motive for diversification, declining economic performance is predicted. A longitudinal empirical analysis provides support for these propositions.

Suggested Citation

  • Charles W. L. Hill & Gary S. Hansen, 1991. "A longitudinal study of the cause and consequences of changes in diversification in the U.S. pharmaceutical industry 1977–1986," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 187-199, March.
    • Handle: RePEc:bla:stratm:v:12:y:1991:i:3:p:187-199
    DOI: 10.1002/smj.4250120303
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.4250120303
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.4250120303?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bowen, H.P. & Wiersema, M., 2007. "International and product diversification: their interrelationship and impact on firm performance," Vlerick Leuven Gent Management School Working Paper Series 2007-6, Vlerick Leuven Gent Management School.
    2. Kali, Raja & Sarkar, Jayati, 2011. "Diversification and tunneling: Evidence from Indian business groups," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 349-367, September.
    3. Sunaina Kanojia & Shasta Gupta, 2023. "Bankruptcy in Indian context: perspectives from corporate governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(2), pages 505-545, June.
    4. Boyan Jovanovic, 1993. "The Diversification of Production," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(1 Microec), pages 197-247.
    5. Tihanyi, Laszlo & Thomas, Wayne B., 2005. "Information-processing demands and the multinational enterprise: a comparison of foreign and domestic earnings estimates," Journal of Business Research, Elsevier, vol. 58(3), pages 285-292, March.
    6. Robert R. Wiggins & Timothy W. Ruefli, 2002. "Sustained Competitive Advantage: Temporal Dynamics and the Incidence and Persistence of Superior Economic Performance," Organization Science, INFORMS, vol. 13(1), pages 81-105, February.
    7. Xue-Feng Shao & Kostas Gouliamos & Ben Nan-Feng Luo & Shigeyuki Hamori & Stephen Satchell & Xiao-Guang Yue & Jane Qiu, 2020. "Diversification and Desynchronicity: An Organizational Portfolio Perspective on Corporate Risk Reduction," Risks, MDPI, vol. 8(2), pages 1-16, May.
    8. Erden, Zeynep & Klang, David & Sydler, Renato & von Krogh, Georg, 2014. "Knowledge-flows and firm performance," Journal of Business Research, Elsevier, vol. 67(1), pages 2777-2785.
    9. Daniele Cerrato & Donatella Depperu, 2012. "Financial Crisis and Corporate Diversification: Evidence from Acquisitions in Italy 2007-2010," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1285, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    10. Young Sik Cho, 2013. "The Effect of Business Diversification on a Firm¡¯s Performance, Depending on Its Dynamic Capabilities and Market Dynamism," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(3), pages 1-8, August.
    11. Narander Kumar Nigam & C. P. Gupta, 2021. "Correlation-based Diversification and Firm Performance: An Empirical Investigation of India," Global Business Review, International Management Institute, vol. 22(2), pages 442-458, April.
    12. Chien-Nan Chen & Wenyi Chu, 2012. "Diversification, resource concentration, and business group performance: Evidence from Taiwan," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 1045-1061, December.
    13. Wrona, Thomas & Trąpczyński, Piotr, 2012. "Re-explaining international entry modes – Interaction and moderating effects on entry modes of pharmaceutical companies into transition economies," European Management Journal, Elsevier, vol. 30(4), pages 295-315.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:12:y:1991:i:3:p:187-199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.