Choice of diversification strategies in an emerging market environment: an empirical evaluation

Aparna Bhatia and Anu Thakur

International Journal of Business and Globalisation, 2017, vol. 19, issue 1, 52-78

Abstract: The paper compares the nature, extent and pattern of diversification of domestic companies with companies having multinational operations. A sample of 536 companies has been studied over three points of time, i.e. 2001, 2006 and 2011. Jacquemin-Berry entropy-index (1979) has been applied to measure diversification. Results suggest that domestic companies have larger extent of diversification as compared to companies with multi-national operations. Domestic as well as multi-national companies seem to prefer 'related diversification' to extreme choices of diversification. The pattern of diversification follows both forward and backward movement while companies with purely domestic operations have shown a greater trend towards forward pattern.

Keywords: diversification; nature; extent; pattern; related diversified; unrelated diversified; domestic companies; multi-national companies operating in India; Indian multi-national companies operating abroad; Jacquemin-Berry entropy-index; emerging market environment. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=85108 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbglo:v:19:y:2017:i:1:p:52-78

Access Statistics for this article

More articles in International Journal of Business and Globalisation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().