Nature Of Diversification Research Articles

Measuring and assessing international diversification strategies of Indian companies

PurposeThe paper aims to measure the nature and extent of international diversification followed by Indian companies over the period 2009–10 to 2017–18. The study also aims to assess the pattern of transition of companies to various strategies of international diversification.Design/methodology/approachJacquemin and Berry’s (1979) entropy approach has been applied to measure the extent and assess the nature of international diversification. Further, the study deploys two-dimensional categorical framework advocated by Vachani (1991) and categorizes the firms into four international diversification strategies.FindingsLarger proportion of companies in internationally low diversification (ILD) strategy reveals low extent of international diversification of Indian companies. The pattern of diversification depicts that the trend of moving forward is speeding up sequentially toward higher strategies of growth. Both the extent and pattern depict that the nature of diversification is shifting from relatedness to un-relatedness with transitions from intra-regions to inter-regions. The study confirms the applicability of eclectic theory and psychic distance Uppsala model in determining the preference of international diversification strategies and process of internationalization respectively in Indian firms.Originality/valueThe paper is first of its kind on account of several reasons. First, such a comprehensive evaluation of preferences for international diversification strategies has never been taken up with reference to emerging economies, especially India. Second, the paper is not static and does not limit itself only to the identification of favored strategies of Indian companies but also gauges the transitional behavior of Indian companies across different strategies at different points of time. In fact it is the first study to statistically research the applicability of psychic distance model in firms in emerging economy. Third, the results not only measure the quantum of international diversification but also assess the extent of relatedness and un-relatedness followed by Indian companies.

Status of Crop Diversification by Land Size Classes: A Case Study from State of West Bengal, India

The food basket of the world is diversifying toward high-value crops. A diversified cropping system offers multifaceted opportunities for farmers. The nature of diversification in developing countries is significantly different at both farming and cropping levels; thus, it is felt important to investigate such a study at different land size holding. This study is conducted to examine the spatiotemporal pattern of crop diversification under different land size classes in the state of West Bengal, which assumes as a representative image of India. The study uses secondary data obtained from the Agriculture Census for the years 1995–1996 and 2015–2016. Gibbs-Martin’s diversification technique is employed for the calculation of the diversification index. Overall analyses reveal that the stunting change in diversification is noted in marginal, small, large, and all land classes. The implication of such growth pushes the rural economy in a skewed direction. For de-stunting growth in diversification index, short- and long-term policy push from public and private agencies is the need of the hour.

Agricultural diversification in Sikkim: A move towards organic high-value agriculture

Objective: To inspect the extent and nature of diversification in the agricultural sector in the Indian state of Sikkim from the initiation of the Organic Mission (2003) to the attainment of full organic status (2016) by the state. Methods: Compound Annual Growth Rate (CAGR) is computed to understand the pace and pattern of agricultural development and the Simpson Diversity Index (SID) and the Percentage Share of different crops in the Total Cropped Area are calculated to measure the extent of diversification. Findings: The CAGR in terms of both area and production were found to be positive for high-value crops whereas traditional agricultural crops recorded negative growth in the same period. The value of SID at 0.81 implies a high degree of diversification towards high-value agriculture in Sikkim. Keywords: Agriculture; diversification; Sikkim; organic; high-value agriculture

Managerial decisions on the nature and scale of corporate activity diversification in the construction sector

Abstract Corporate activity diversification is a promising but at the same time risky condition of a company’s adaptation to the business environment. Effectiveness of diversification processes in enterprises may be achieved by research in the following areas: development of methods of internal and external business environment analysis as a basis for diversification decisions; understanding the dependence of the scope and nature of corporate activity diversification on the market situation; providing science-based advice for the management of diversified companies, especially large ones; improvement in the methods of diversification measuring so that a complex analysis of the diversification process would become implementable. Based on the study of the Lithuanian construction sector, this paper seeks to provide new insights into the following aspects of corporate activity diversification: preconditions and conditions for deciding on corporate activity diversification; the problem of the scale and nature of diversification; organisational management conditions for the success of diversification projects. Furthermore, an in-depth discussion of the problematic of measuring the achieved level of diversification is offered.

Mediating Effect of Intellectual Capital on Corporate Governance and Performance of Conglomerates in Nigeria

Purpose: The nature of diversification in the form of conglomerates is the research theme for this study. Thus, CG’s functions on FP on conglomerates firms of Nigerian economy was studied while applying IC as the mediating variable. 
 Design/Methodology: This research depends on archival data collected from the NSE. Firms have been chosen based on the convenient sampling method and an important parameter for judgment is Conglomerated firms. In order to get genuine results, ten years of financial data have been taken into consideration. Multiple regression technique was used to analyze the data. The software used for analysis was STATA version 14.0.
 Results: The model I of the study disclose a pessimistic and insignificant impact of board size and board independence on IC using VAIC as a proxy. In contrast, model II results disclosed that the performance of the firms was impacted by the board’s size and institutional ownership. Implying that, the greater the size of the firm as well as more shares owned by institutional shareholders the higher the profit.
 Practical Implications: Nigeria being one of the growing economies now is dependent on knowledge assets and hence it has a positive effect on the firm’s performance. Conglomeration is seen even between employee’s skills of both industries, which give a positive outcome. Hence, firms under conglomerate tags have a strong impact in relation to intellectual capital.

Corporate diversification and dividend policy: empirical evidence from Malaysia

The study examined the impact of corporate diversification on dividend policy. It locates the investigation in Malaysia, using 712 firms listed on the main market of Bursa Malaysia for a 5-year period from 2010 to 2014. The results show that industrially diversified firms pay low dividends as the firms could not leverage economies of scope by diversifying into different industries. The firms’ motive to conduct industrial diversification activities may not be related to the enhancement of firm performance and shareholders’ wealth. In contrast, geographical diversification positively influences dividend policy and this relationship is in relation to the resource-based view hypothesis that discusses the efficient use of resources through the internal capital market. This study contributes towards our understanding of the impact of the different nature of diversification on firm-level dividend policies.

A genetic legacy of introgression confounds phylogeny and biogeography in oaks.

Oaks (Quercus L.) have long been suspected to hybridize in nature, and widespread genetic exchange between morphologically defined species is well documented in two- to six-species systems, but the phylogenetic consequences of hybridization in oaks have never been demonstrated in a phylogenetically diverse sample. Here, we present phylogenomic analyses of a ca 30 Myr clade that strongly support morphologically defined species and the resolution of novel clades of white oaks; however, historical hybridization across clade boundaries is detectable and, undiagnosed, would obscure the imprint of biogeographic history in the phylogeny. Phylogenetic estimation from restriction-site-associated DNA sequencing data for 156 individuals representing 81 species supports two successive intercontinental disjunctions of white oaks: an early vicariance between the Eurasian and American white oaks, and a second, independent radiation represented by two relictual species. A suite of subsampled and partitioned analyses, however, supports a more recent divergence of the Eurasian white oaks from within the American white oaks and suggests that historic introgression between the Eurasian white oaks and a now-relictual lineage biases concatenated phylogenetic estimates. We demonstrate how divergence and reticulation both influence our understanding of the timing and nature of diversification and global colonization in these ecologically and economically important taxa.

Upper bounds on value-at-risk for the maximum portfolio loss

Extremal dependence of the losses in a portfolio is one of the most important features that should be accounted for when estimating Value-at-Risk (VaR) at high levels. Multivariate extreme value theory provides a principled framework for the modeling and estimation of extremal dependence. In practice, however, this involves dealing with a challenging infinite dimensional parameter such as the spectral measure. Here, following recent developments in Schlather and Tawn (Extremes, 5(1) 87–102; 2002), Molchanov (Extremes, 11, 235–259; 2008), and Strokorb and Schlather (2013), we propose to represent extremal dependence of a multivariate portfolio via the so–called Tawn–Molchanov (TM) model, which is finite dimensional. Every max–stable random vector X can be associated with a TM max-stable vector Y = TM(X) so that the extremal coefficients of X and Ymatch and at the same time Y stochastically dominates X in the lower orthant order. This result readily yields an optimal upper bound on the value-at-risk \(\text {VaR}_{\alpha }(\mathbf {X}^{\vee })\) of the maximum portfolio loss \(\mathbf {X}^{\vee }:=\max _{j=1,\ldots ,d}X_{j}\). We develop a statistical methodology for estimating TM models from data and illustrate the resulting upper bounds on \(\text {VaR}_{\alpha }(\mathbf {X}^{\vee })\) with simulations and real data. Fitting TM models to portfolio data may be of independent practical interest, since their coefficients provide a qualitative picture of the degree and nature of diversification to extreme shocks.

Factors Leading to Success in Diversified Occupation: A Livelihood Analysis in India

Purpose: Livelihood diversification is a sound alternative for higher economic growth and its success or failure is conditioned by the interplay of a multitude of factors. The study of the profile of the farmers in which they operate is important to highlight the factors leading to success in diversified livelihoods. Design/Methodology/Approach: A total of 160 households of farmers were selected randomly and were interviewed to collect primary data for the study. To measure the success of diversified occupation a success–failure scale was developed following the steps used by Singh et al., ‘t’ statistics was used to compare the two groups. Discriminant function analysis was used to identify the factors determining success and failure in diversified occupation. Findings: The study revealed that 53% of the diversifiers were successful in their diversified activities. Around 62.50% diversifiers under the high success category were adopted non-farming nature of diversification along with farm diversification. Number of livestock holding, resource mobilisation potentiality, contact with extension personnel, distance from market, share of non-farm income, credit-seeking behaviour and dependency ratio were major characters discriminating successful diversifiers from unsuccessful diversifiers. Practical Implications: The paper would be useful for the researchers and policy-makers to assess and compare the livelihood security of different rural communities in the country. Originality/Value: The study was originally conducted by the authors. Nothing similar has been previously published or is currently under consideration for publication by another journal.

Understanding Diversification Strategy in Venture Capital Market

Studies of diversification strategy in the venture capital (VC) market have shown that VC firms apply both specialization and diversification strategies. This study builds on the early results and investigates how the nature of diversification – related and unrelated – affects firm performance. We draw arguments from efficient knowledge management and a perspective of structural coordination needs. The secondary data of VC investment from 2002 to 2012 were collected, and regression analysis was performed. Our results suggest that related diversification is associated with better firm performance, and venture capitalists seem to prefer related to unrelated diversification at early stage.

Medium Sized High Tech International Acquisitions: A Longitudinal Perspective (1990-2011)

This article examines the various forms and strategical options that are found and employed when merging companies of any size with medium-sized technological companies, with a view to understanding what outcomes are involved. This research paper is based on a sample consisting of 5 738 mergers and acquisitions transactions in the high-tech sector, particularly those involving innovative companies with technological interests. The aim of this research is to show how these strategic manoeuvres operate, using a multi-criteria analysis chart that includes the size of the company, the level of participation, the nature of diversification, the duration of transactions and value ratios. In this way, the research will help to provide better understanding of the characteristics of these technological merger acquisition operations, creating a typology of operations and manoeuvres and correcting some of the beliefs commonly held.

A conceptual model of diversification in apparel retailing: the case of Next plc

This paper examines the nature of diversification within a successful UK apparel retailer, illustrating the competitive advantages which may be accrued as a consequence. Analysis of the Next business model and its corporate development suggests that diversification of brand, product, channel, format, foreign market and business support variables concentric to the core brand management competency of the company may be successful in creating sustainable competitive advantage for an apparel retailer. The paper proposes a conceptual model for the diversification of an apparel retailer, demonstrating hypothetical factors which may be used in the diversification of an apparel retail business in contemporary markets.

Shocks, recovery trajectories and resilience among aquaculture-dependent households in post-tsunami Aceh, Indonesia

Aquaculture-dependent households in Bireuen District, Aceh, Indonesia, have in recent years endured repeated, diverse shocks; multiple economic shocks, shrimp disease, civil war and the 2004 Asian tsunami. Following the tsunami, extensive international aid efforts were directed at aquaculture pond rehabilitation. Yet, the pitfalls of simply recreating a system that was run down, underperforming and environmentally damaging due to the ongoing effects of multiple previous shocks are clear. Research reported here is one component of an action research project aimed at rebuilding improved, sustainable systems. The diversity of shocks experienced provided an unparalleled opportunity to look at the range of impacts and coping mechanisms employed at the household level. Detailed analysis of factors affecting rebuilding and recovery strategies from shocks highlighted the importance of diversification across multiple livelihood characteristics, as well as the multi-dimensional nature of diversification itself. Diversification in household livelihood strategy, aquaculture species availability and market options for aquaculture produce were all important factors contributing to recovery and resilience. The “distance” (degree of difference) among diversified options was shown to be critical in building resilience.

Diversification in response to ICT convergence – indigenous capabilities versus R&D alliances of the Finnish telecom industry

PurposeWhile the ICT industry as a whole is undergoing a potentially disruptive phase of development due to the convergence between information and telecom technologies and the rapid diffusion of internet‐related applications. Against this background the purpose of the paper is to analyse recent patterns of internal/indigenous and external diversification of prominent Finnish telecom firms using data on patents and strategic R&D alliances.Design/methodology/approachThe methodology comprises of statistical analyses of patterns of patenting of Finnish telecom firms to capture the internal/indigenous nature of diversification, compared with patterns of external diversification based on a new database of alliances of Finnish firms.FindingsThe results indicate that the Finnish telecom industry has diversified its technological base in recent years. The industry appears internally/indigenously weak in internet‐related “new” telecom technologies and related applications. However, telecom firms have also extensively engaged themselves in complementary R&D alliances in these fields.Research limitations/implicationsThe paper carries important implications for policymakers and managers alike related to the sustainability of previous success of Finnish telecom. Limitation related to the use of Finnish patent data that might to capture software technologies sufficiently, and does not aim to/cannot capture the diversified technological competencies of Nokia on a global level.Originality/valueThe originality of the paper lies in the combination of patent and R&D alliances data, as well as the development of a concordance table to link technology classes to broader developments in the industry, for a novel and systematic analysis of the responsiveness of the Finnish telecom industry to ICT convergence

Linking corporate strategy to capital structure: diversification strategy, type and source of financing

This study examines the relationship between corporate strategy and capital structure, specifically the diversfication and financing strategies of a firm. The results show that equity financing is preferred for related diversification and unrelated diversification is associated with debt financing. Additionally, firms diversifying through acquisitions are more likely to use public sources of financing and those emphasizing internal development of new businesses depend primarily on private sources of financing. Using simultaneous equation estimation, we found a reciprocal relationship between a firm’s financial strategy and its corporate diversification strategy. Mode and nature of diversification are also reciprocally interrelated. © 1998 John Wiley & Sons, Ltd.

An evaluation of clade-shape statistics using simulations and extinct families of mammals

The use of clade-shape statistics, particularly center of gravity, on paraphyletic groups has been questioned since the introduction of these descriptive statistics. In addition, previous studies have found that early-arising groups of organisms are bottom-heavy in center of gravity relative to later-arising groups, leading to macroevolutionary hypotheses about the nature of diversification. Paraphyletic groups have been asserted to be inherently bottom-heavy because of preconceived ideas as to how paraphyletic group formation affects center of gravity. In turn, early-arising groups of organisms have been asserted to be bottom-heavy because they also tend to be paraphyletic, thus calling into question the biological significance of the bottom-heaviness of early-arising groups.In this study, both computer simulations and the evolutionary history of families of mammals show that paraphyletic groups are inherently top-heavy. Simulated monophyletic clades and monophyletic families of mammals have centers of gravity near their expected positions at the midpoint of clade duration, while paraphyletic groups are significantly top-heavy.Early-arising families of mammals are found to be inherently top-heavy, rather than bottom-heavy as found by earlier studies. This new result is likely to be due to the use of updated stratigraphic range data and different taxonomic assignments rather than to bias due to inclusion of paraphyletic groups or bias due to unequal time-unit lengths in the Cenozoic time scale.

The extent and nature of diversification in New Zealand manufacturing industries∗

The extent and nature of diversification in New Zealand manufacturing industries∗

ΓΝΩΜΑΙ ΔΙΑΦΟΡΟΙ.: The Origin and Nature of Diversification in the History of Early Christianity

I. The Crisis of the Historical and Theological Criteria.Already Walter Bauer, well known as a lexicographer, but unfortunately little known as a historian of the Ancient Church, in his ingenious monograph Rechtgläubigkeit und Ketzerei im ältesten Christentum (1934), had demonstrated convincingly that such Christian groups which were later labelled “heretical,” actually dominated in the first two or three centuries, both geographically and theologically. Recent discoveries, especially those of Nag Hammadi in Upper Egypt, have made it definitely clear that Walter Bauer was essentially right and that a thorough and extensive re-evaluation of early Christian history is called for.