The dominance of diversified versus specialized firms across industries
AbstractSome industries are populated primarily by diversified firms, while other industries are dominated by specialized firms, which are present only in such a given industry. In this study, we analyze what factors determine the dominance of diversified versus specialized firms, and its effect on firm performance. In line with transaction cost economics, we show that market concentration and the degree of variability in the diversification pattern of firms in the industry are negatively associated with the importance of the activity accounted by specialized firms across the 720 industries in our study.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Business Research.
Volume (Year): 59 (2006)
Issue (Month): 3 (March)
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Web page: http://www.elsevier.com/locate/jbusres
Other versions of this item:
- Manuel Becerra & Juan Santalo, 2005. "The Dominance of Diversified Versus Specialized Firms Across Industries," Working Papers Economia wp05-06, Instituto de Empresa, Area of Economic Environment.
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