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Explaining Corporate Structure:The Md Matrix, Product Differentiation And Size Of Market

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Conventional explanations of diversification and multinationality both point to the existence of intangible assets as a driving force. Using a new database of leading EU firms in 100 NACE 3-digit industries, we devise a classificatory scheme which allows us to analyze multinationality and diversification jointly. We find that product differentiation and home market primary industry size constraints impact differently on different types of diversified firms. For instance, it appears that the causes ofhome country diversification are qualitatively different from those of diversification abroad.

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  • Alessandro Sembenelli & Laura Rondi & Stephen W. Davies, 1995. "Explaining Corporate Structure:The Md Matrix, Product Differentiation And Size Of Market," CERIS Working Paper 199504, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:199504
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    1. Schmalensee, Richard, 1992. "Sunk Costs and Market Structure: A Review Article," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 125-134, June.
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    Cited by:

    1. Giampaolo Vitali, 1999. "The entry mode choice of EU leading companies (1987-1997)," CERIS Working Paper 199910, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.

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