The link between product diversification and performance among Spanish manufacturing firms: Analyzing the role of firm size
This study sheds additional light on the product diversification‐performance relationship for firms in a country having recently attained an advanced economy status in our period of analysis. We assume there will be an inverted U‐shaped relationship and use a sample of small, medium, and large Spani...
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Published in | Canadian journal of administrative sciences Vol. 32; no. 1; pp. 58 - 72 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Halifax
Blackwell Publishing Ltd
01.03.2015
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Subjects | |
Online Access | Get full text |
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Summary: | This study sheds additional light on the product diversification‐performance relationship for firms in a country having recently attained an advanced economy status in our period of analysis. We assume there will be an inverted U‐shaped relationship and use a sample of small, medium, and large Spanish manufacturing firms between 1994 and 2008. Our findings provide solid support for this assumption, and are identical when the sample consists of small, medium, and large firms and of large firms alone. Our results also suggest that the larger the firm, the higher the optimal level of diversification. Panel data models are used to control for unobservable heterogeneity and potential endogeneity problems. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.
Résumé
Cette étude permet de mieux cerner la relation entre la diversification des produits et la performance au sein des firmes localisées dans un pays qui a tout récemment atteint le statut d'économie avancée. Elle pose comme hypothèse que la relation entre la diversification des produits et la performance est une relation en U renversé et s'appuie sur un échantillon de petites, moyennes et grandes entreprises de fabrication espagnoles entre 1994 et 2008. Les résultats, qui valident de façon convaincante notre hypothèse, restent inchangés quand on considère les petites, moyennes et grandes firmes ou uniquement les grandes firmes. Ils indiquent également que plus une firme est grande, plus son niveau optimal de diversification est élevé. Les modèles de données de panel sont utilisés pour contrôler l'hétérogénéité non observable et les problèmes d'endogénéité potentiels. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd. |
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Bibliography: | istex:5E7FA7E32C7A7365046DB58EEB21AF4C04508F6F ArticleID:CJAS1303 ark:/67375/WNG-HKRLHWL1-Z |
ISSN: | 0825-0383 1936-4490 |
DOI: | 10.1002/cjas.1303 |