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'Stick to the knitting' vs. 'the mysteriously potent charm of diversification': the Greek evidence

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  • Vassilis Droucopoulos

    (Department of Economics, University of Athens, Athens, Greece)

  • Theodore Papadogonas

    (Department of International and European Economic Studies, The Athens University of Economics and Business, Athens, Greece)

Abstract

This paper provides evidence on the extent, nature of and factors associated with diversification using a novel set of data, referring to both firms and plants, from the Greek manufacturing sector (1992). The paper brings together a strand of hypotheses formulated, and partially tested, in the relevant literature. More specifically, we investigate the relationship between the degree of diversification and firm|industry characteristics by separately examining the behaviour of multiplant and uniplant firms. Certain patterns emerge which are then compared with those that arose in other studies. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Vassilis Droucopoulos & Theodore Papadogonas, 1999. "'Stick to the knitting' vs. 'the mysteriously potent charm of diversification': the Greek evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 217-227.
  • Handle: RePEc:wly:mgtdec:v:20:y:1999:i:4:p:217-227
    DOI: 10.1002/(SICI)1099-1468(199906)20:4<217::AID-MDE929>3.0.CO;2-C
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    References listed on IDEAS

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    1. Gorecki, Paul K, 1975. "An Inter-Industry Analysis of Diversification in the U.K. Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 24(2), pages 131-146, December.
    2. Berry, Charles H, 1971. "Corporate Growth and Diversification," Journal of Law and Economics, University of Chicago Press, vol. 14(2), pages 371-384, October.
    3. Hamilton, R. T., 1992. "Diversification and concentration changes in a liberalised environment : The case of New Zealand manufacturing industries," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 15-25, March.
    4. Hughes, Kirsty & Oughton, Christine, 1993. "Diversification, Multi-market Contact and Profitability," Economica, London School of Economics and Political Science, vol. 60(238), pages 203-224, May.
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    Cited by:

    1. Theodore Papadogonas & Vassilis Droucopoulos, 2004. "Do Small Firms Breathe Heavily Down The Necks of Their Larger Brethren?," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 2(1), pages 59-65.

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