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Complexity as a constraint on firm expansion within and across industries

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Author Info
Thomas Hutzschenreuter (Department of Strategy, WHU Otto Beisheim School of Management, Vallendar, Germany)
Fabian Guenther (Department of Strategy, WHU Otto Beisheim School of Management, Vallendar, Germany)
Abstract

With this paper, we want to shed light on factors influencing a firm's rate of expansion. We argue that expansion is a complex task and complexity associated with expansion projects in one period can negatively impact rate of expansion in the following period. Moreover, we argue that firm portfolio complexity also slows down further expansion. Using longitudinal data on the expansion path of 91 German companies, we show that added product scope of expansion and degree of internationalization characterizing expansion in one period as well as level of product and international diversity have a significant impact on slowing down rate of expansion in the subsequent period. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1459
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 30 (2009)
Issue (Month): 6 ()
Pages: 373-392
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:mgtdec:v:30:y:2009:i:6:p:373-392

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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  6. Alan M. Rugman & Alain Verbeke, 2004. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Working Papers 2004-19, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy. [Downloadable!]
    Other versions:
  7. Thomas Hutzschenreuter & Torben Pedersen & Henk W Volberda, 2007. "The role of path dependency and managerial intentionality: a perspective on international business research," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 38(7), pages 1055-1068, December. [Downloadable!] (restricted)
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  9. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August. [Downloadable!] (restricted)
    Other versions:
  10. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
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This page was last updated on 2009-11-29.

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