Product Diversity: The Traditional View of Business Diversification
As stated at the outset of this book, the concept of product diversity is central to an understanding of firm diversification. Many studies have been published yet the findings have not provided a consistent picture. This chapter, therefore, will examine the theoretical perspective on the effect of product diversity on firm performance and provide some recent statistical findings on this phenomenon in the context of large MNCs.
KeywordsMarginal Cost Product Diversity Traditional View Organizational Slack Single Business
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