Technology and demand mechanism in firm diversification strategies.An experimental method to discriminate the fundamental drivers
An essential part of any firm’s corporate strategy is the choice of the business portfolio through which to compete. When the portfolio’s decision involves more than one business, firms are said to implement a diversification strategy, which is put into action through the firms concomitant entry in different market segments. It implies that the nature of the market segmentation affects the firms’ differentiation degree. The aim of this paper consists in exploring a method for determining the market segmentation that is most informative to understand firms’ diversification strategies, or in other words the market segmentation that most clearly reveals about firms’ main diversification drivers. Given that each business can be described according to a set of business characteristics and by using different levels of detail, in the perspective of understanding firm diversification strategies, it is fundamental to determine the directions in the space of business characteristics along which it is “mostly convenient” to claim the business diversity and which is the “best” level of aggregation at which assess the businesses boundaries. This paper proposes an experimental method to do it. In particular, it empirically discerns which of two particular criteria – functional versus technological – mostly enrich our understanding of the diversification strategies adopted by Italian plastic processing machinery suppliers, finding out the most instructive level of aggregation of the market segmentation – namely the best segment dimension – to investigate the firms diversification strategies.
|Date of creation:||Dec 2013|
|Contact details of provider:|| Postal: Via Real Collegio, 30 10024 - Moncalieri TO|
Web page: http://www.ircres.cnr.it/
More information through EDIRC
References listed on IDEAS
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.:
- Rosenberg, Nathan, 1963. "Technological Change in the Machine Tool Industry, 1840–1910," The Journal of Economic History, Cambridge University Press, vol. 23(04), pages 414-443, December.
- Teece, David J., 1982.
"Towards an economic theory of the multiproduct firm,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 3(1), pages 39-63, March.
- David J. Teece, 2003. "Towards an Economic Theory of the Multiproduct Firm," World Scientific Book Chapters, in: Essays In Technology Management And Policy Selected Papers of David J Teece, chapter 15, pages 419-446 World Scientific Publishing Co. Pte. Ltd..
- Michael Gort, 1962. "Introduction to "Diversification and Integration in American Industry"," NBER Chapters, in: Diversification and Integration in American Industry, pages 3-7 National Bureau of Economic Research, Inc.
- Michael Gort, 1962. "Diversification and Integration in American Industry," NBER Books, National Bureau of Economic Research, Inc, number gort62-1.
- Patel, Pari & Pavitt, Keith, 1997. "The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety," Research Policy, Elsevier, vol. 26(2), pages 141-156, May.
When requesting a correction, please mention this item's handle: RePEc:csc:cerisp:201317. 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: (Anna Perin)or (Giancarlo Birello)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.