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Distinguishing between Related and Unrelated International Geographic Diversification: A Comprehensive Measure of Global Diversification

Sushil Vachani
Journal of International Business Studies
Vol. 22, No. 2 (2nd Qtr., 1991), pp. 307-322
Stable URL: http://www.jstor.org/stable/155212
Page Count: 16
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Distinguishing between Related and Unrelated International Geographic Diversification: A Comprehensive Measure of Global Diversification
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Abstract

This paper argues that it is important to distinguish between related and unrelated international geographic diversification when measuring impact of diversification on performance. It then extends the Jacquemin-Berry entropy measure to propose a comprehensive measure of global diversification that comprises related and unrelated product diversification, and related and unrelated international geographic diversification. It suggests a classification of firms based on diversification strategies and proposes hypotheses for future research.

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