Firm-specific antecedents affecting product diversification: evidence from India. Issue 3 (3rd July 2021)

• Record Type: Journal Article
• Authors: Thakur, Anu; Bhatia, Aparna
• Is Part Of: Transnational corporations review. Volume 13:Issue 3(2021)
• Page Start: 293
• Page End: 306
• Publication Date: 2021-07-03
• Subjects: Diversification -- entropy index measure -- Tobit regression -- India -- firm performance; F23 -- M16 -- M19; 338.88
• DOI: 10.1080/19186444.2021.1873715
• Languages: English
• ISSNs: 1918-6444

Abstract

Abstract: The main purpose of this paper is to introduce what affects the firm to diversify. This paper is based on an empirical analysis of a sample of 453 manufacturing companies in India. Jacquemin-Berry Entropy-Index measure has been used to measure diversification; whereas to determine the factors affecting diversification strategy, Panel Tobit Regression Analysis has been applied. The research findings indicate that firm-specific antecedents influence the decision to diversify. Corporate managers should follow a prudent behaviour while adopting strategic planning for the growth of the company. Managers should have to conduct proper statistical analyses to find out a firm's optimal level of corporate diversification for maximising the firm performance.