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Note—Developing a Global Diversification Measure

W. Chan Kim

Management Science · 1989 · Volume 35 · Issue 3

DOI: 10.1287/mnsc.35.3.376

Abstract

Previous measures, focusing on either the international market or product dimension of corporate diversification, have been unsatisfactory for analyzing global diversification since both dimensions constitute important elements of a firm's global diversification strategy. This study constructs a measure in which both dimensions can be captured, allowing business strategy researchers to examine corporate diversification in the global context. In accomplishing this task, this study extends the Jacquemin-Berry entropy diversification measure to the global horizon.

Keywords

international market/product diversification, global diversification strategy, entropy measure

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