Macro-Competitive Context and Diversification: The Impact of Macroeconomic Growth and Foreign Competition

Long Range Planning, in Press, DOI 10.1016/J.LRP.2013.07.003

47 Pages Posted: 20 Mar 2014

See all articles by Julia Hautz

Julia Hautz

University of Innsbruck

Michael Mayer

University of Bath - School of Management

Christian Stadler

University of Warwick - Warwick Business School

Date Written: July 11, 2013

Abstract

This longitudinal study of large European firms (1993-2007) offers a conceptual model that explains how two key aspects of the macro-competitive environment, macroeconomic growth and foreign competition, shape product and international diversification. The results indicate that greater foreign competition reduces product diversification but fosters international diversification, while macroeconomic growth has a positive impact on product diversification and a negative one on international diversification. These findings suggest that managers have to set economy-wide, macro-competitive conditions alongside firm and industry-level considerations when making diversification strategy choices.

Keywords: diversification, internationalisation, macroeconomic growth, foreign competition

JEL Classification: D21, F23

Suggested Citation

Hautz, Julia and Mayer, Michael and Stadler, Christian, Macro-Competitive Context and Diversification: The Impact of Macroeconomic Growth and Foreign Competition (July 11, 2013). Long Range Planning, in Press, DOI 10.1016/J.LRP.2013.07.003, Available at SSRN: https://ssrn.com/abstract=2410840

Julia Hautz

University of Innsbruck ( email )

Universit├Ątsstra├če 15
Innsbruck, Innsbruck 6020
Austria

Michael Mayer

University of Bath - School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Christian Stadler (Contact Author)

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

HOME PAGE: http://www.wbs.ac.uk/about/person/christian-stadler/

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