Multiproduct Mergers and the Product Mix in Domestic and Foreign Markets

Chan, Jackie M.L.; Irlacher, Michael; Koch, Michael

doi:10.2139/ssrn.4097848

Cited by 2 publications

(5 citation statements)

References 46 publications

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“…This formulation is somewhat clumsy for thinking about multiproduct firms whereas our formulation of organizational capital plays a similar role to the concept of span control that mimics many of its features. A more recent application of the concept of organizational capital to multi-product firms is Chan et al (2022). 12 The heterogeneity across products is one mechanism to get firms to be willing to export some set of goods and to engage in MP in another set of goods.…”

Section: Orcidmentioning

confidence: 99%

“…We choose to follow Bernard et al (2011) in the heterogeneous draw approach due to its tractability given CES preferences. Others such as Chan et al (2022) show that scarce organizational capital and "core competence" can be also be combined. 13 It is possible to rewrite the model so that productivity draws instead corresponds to heterogeneity across products in the extent to which organizational capital can be adapted for the production of the particular good.…”

Section: Orcidmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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Scale, scope, and the international expansion strategies of multiproduct firms

Yeaple

2023

Rev International Economics

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A growing literature seeks to understand how the characteristics of firms shape the manner in which they serve foreign markets. We consider an environment in which multiproduct firms can sell their products in multiple countries from multiple locations. We show that there are strong empirical regularities in the expansion strategies of U.S. multinational firms and that simple extensions of standard models do not explain these regularities. We augment these models by introducing a framework in which organizational capital is a scarce input within the firm that has to be allocated to particular products and production locations and show that the standard model, so amended, is consistent with the data. We then use the model to analyze the productivity effect of changes in international frictions both within and across firms.

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Section: Orcidmentioning

confidence: 99%

Section: Orcidmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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Scale, scope, and the international expansion strategies of multiproduct firms

Yeaple

2023

Rev International Economics

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“…Target firm plants that are kept tend to be in the acquiring firms' main industries of production. Chan et al [2022] explore mergers of multiproduct firms using Danish register data, finding that merged firms reduce the overall number of products offered in order to reallocate assets to their core varieties. These analyses focus on the broad product lines that target and acquiring firms produce before and after merging.…”

Section: Introductionmentioning

confidence: 99%

Product Repositioning by Merging Firms*

Atalay,

Sorensen,

Sullivan

et al. 2023

The J Industrial Economics

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We examine merging firms' additions and removals of products for a sample of 66 mergers across a wide variety of consumer packaged goods markets. We find that mergers lead to a net reduction in the number of products offered by merging firms. Merging firms tend to both drop and add products at the periphery of their joint product portfolios, with the net effect of increasing within‐firm product similarity. These results are consistent with theories of the firm that emphasize cost synergies among similar types of products or managerial core competencies linked to particular segments of the product market.

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Multiproduct Mergers and the Product Mix in Domestic and Foreign Markets

Cited by 2 publications

References 46 publications

Scale, scope, and the international expansion strategies of multiproduct firms

Scale, scope, and the international expansion strategies of multiproduct firms

Product Repositioning by Merging Firms*

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