Related and unrelated diversification in crisis and in prosperity

Arbeitspapier

How does technological relatedness influence the portfolio of multi-product firms hit by external shocks? To answer this question, we look at the effect of product-specific demand shocks on product portfolios of Hungarian firms in the 2005-2012 period. We find that production have become more cohesive in terms of technological relatedness if firms were exposed to demand shocks. Evidence suggests that firms in crisis drop or downsize additional products not related to their core product and concentrate resources on related products.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IEHAS Discussion Papers ; No. MT-DP - 2018/23

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Firm Behavior: Empirical Analysis ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Firm Performance: Size, Diversification, and Scope
• Subject: product diversification ; technological relatedness ; industry space network ; dynamics of product portfolio ; crisis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kiss, Károly Miklós ; Lőrincz, László ; Csáfordi, Zsolt ; Lengyel, Balázs
• Event: Veröffentlichung
• (who): Hungarian Academy of Sciences, Institute of Economics
• (where): Budapest
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/222036
• Last update: 10.03.2025, 11:45 AM CET