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

Sushil Vachani
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Sushil Vachani: Boston University

Journal of International Business Studies, 1991, vol. 22, issue 2, 307-322

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. It suggests a classification of firms based on diversification strategies and proposes hypotheses for future research.© 1991 JIBS. Journal of International Business Studies (1991) 22, 307–322

Date: 1991
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