Profitability, Diversification, and Multinationality in Leading German and UK Firms
This paper analyzes the relationship between product and geographic diversification and profitability in leading German and UK firms. Using a unique and disaggregated dataset, we first link a firm¡¦s level of product and geographic diversification to both industry and firm-specific factors. The impact of the Single European Market and industry type are found to be important in explaining diversification levels. Secondly, during the early 1990s, we find evidence of a curvilinear relationship between profitability and product diversification for German firms but between profitability and geographic diversification for UK firms. Diversification and multinationality are found to be complementary strategies for German firms but substitute strategies for UK firms.
Volume (Year): 4 (2005)
Issue (Month): 2 (August)
|Contact details of provider:|| Postal: 100 Wenhwa Road, Seatwen, Taichung|
Web page: http://www.ijbe.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Teece, David J., 1986.
"Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy,"
Elsevier, vol. 15(6), pages 285-305, December.
- Teece, David J., 1993. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 22(2), pages 112-113, April.
- Davies, Stephen W. & Rondi, Laura & Sembenelli, Alessandro, 2001. "Are multinationality and diversification complementary or substitute strategies?: An empirical analysis on European leading firms," International Journal of Industrial Organization, Elsevier, vol. 19(8), pages 1315-1346, September.
- Kendall Roth & David M Schweiger & Allen J Morrison, 1991. "Global Strategy Implementation at the Business Unit Level: Operational Capabilities and Administrative Mechanisms," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 369-402, September.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Peter J Buckley, 1988. "The Limits of Explanation: Testing the Internalization Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 19(2), pages 181-193, June.
- Davies, Stephen & Lyons, Bruce, 1996. "Industrial Organization in the European Union: Structure, Strategy, and the Competitive Mechanism," OUP Catalogue, Oxford University Press, number 9780198289739.
When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:4:y:2005:i:2:p:87-105. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su)
If references are entirely missing, you can add them using this form.