Are EU Leading Firms Returning to Core Business? Evidence on Refocusing and Relatedness in a Period of Market Integration

• Published in: Review of industrial organization Vol. 27; no. 2; pp. 125 - 145
• Main Authors: RONDI, LAURA, VANNONI, DAVIDE
• Format: Journal Article
• Language: English
• Published: Boston Springer 01.09.2005; Springer Nature B.V
• Subjects: Beverage industries; Business; Business strategies; Business structures; Business studies; Capital markets; Competition; Cost control; Diversification; Diversified companies; Economic integration; Economic theory; Efficiency; Enterprises; Europe; European integration; European Union; Extractive industries; Industrial growth; Industrial market; Industrial organization; Industrial output; Industrial sectors; Industry; Integration; Manufacturers; Manufacturing; Manufacturing industries; Market analysis; Market shares; Organizational behavior; Product diversification; Productivity; Studies; Trade liberalization; Europe

This paper tests, for 108 diversified EU manufacturing leaders faced by the EU integration shock (1987-1997), if firms responded to increased competitive pressure by readjusting their industry-mix around a core of related activities. Our results show that, in spite of limited reduction in diversific...