The Optimal Diversification Strategy in Pharmaceutical Industry
Balance-centred or Hetero-centred
Bibliographic Data
| ID | 19450220 |
|---|---|
| Authors | Keungoui Kim (0000-0002-0839-8813, University College Dublin), Junseok Hwang (0000-0003-2415-1711, Seoul National University), Sungdo Jung (0000-0001-5883-4313, SUNGDO JUNG, Korea Construction Infonet, Seoul, South Korea.), Eungdo Kim (0000-0002-2942-6588, Chungbuk National University, corresponding author) |
| Year | 2021 |
| Volume | 26 |
| Issue | 2 |
| Pages | 272-295 |
| Publication date | 2021-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Science Technology and Society (JOURNAL) |
| Journal identifiers | ISSN: 0971-7218 • E-ISSN: 0973-0796 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/09717218211005616 |
| OpenAlex | W3162031940 |
| Language | EN |
| Citations received | 1 |
| References cited | 69 |
Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance
Business · Industrial organization · Innovation and Knowledge Management · Innovation Diffusion and Forecasting · Intellectual Property and Patents · Marketing
Knowledge-relatedness in firm technological diversification
Towards an economic theory of the multiproduct firm
International Diversification
The Size Distribution of Innovating Firms in the UK
Managing Firm Resources in Dynamic Environments to Create Value
Arriving at the high-growth firm
A general framework for analysing diversity in science, technology and society
Emergence of Scaling in Random Networks
Relationship between Technological Diversification of Social Network and Technological Innovation Performance
How Does Probability of Innovation Change with Firm Age
The Simple Economics of Basic Scientific Research
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2024 - 2024 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |