Product Diversification, Corporate Entrepreneurship, and Firm Performance: The Case of Vietnamese Firms

Proceeding of European Association for Research in Industrial Economics (EARIE) Conference, 2010

27 Pages Posted: 9 Sep 2012

See all articles by Hien Thu Tran

Hien Thu Tran

RMIT International University; University of Bologna

Enrico Zaninotto

University of Trento - Department of Computer and Management Sciences (DISA)

Date Written: 2010

Abstract

This paper reexamines the relationship between the firm’s product diversification strategy and its performance. I propose a theoretical framework to indicate that the effect of diversification, as an act of corporate entrepreneurship, depends on whether responsiveness or synergy is emphasized. Empirical evidences from the provincial firm-level database in Vietnam show that diversification has positive and non-linear decreasing impact on firm-level profitability. The estimation results are consistent with different methodological treatments adopted: diversification index measured exogenously or endogenously in static model or dynamic model.

Keywords: product diversification, corporate entrepreneurship, Vietnam, firm performance

Suggested Citation

Tran, Hien Thu and Tran, Hien Thu and Zaninotto, Enrico, Product Diversification, Corporate Entrepreneurship, and Firm Performance: The Case of Vietnamese Firms (2010). Proceeding of European Association for Research in Industrial Economics (EARIE) Conference, 2010, Available at SSRN: https://ssrn.com/abstract=2143813 or http://dx.doi.org/10.2139/ssrn.2143813

Hien Thu Tran (Contact Author)

RMIT International University ( email )

521 Kim Ma, Ba Dinh, Hanoi
Hanoi, Hanoi 10000
Vietnam

University of Bologna ( email )

Strada Maggiore 45
Bologna, 40125
Italy

Enrico Zaninotto

University of Trento - Department of Computer and Management Sciences (DISA) ( email )

Via Inama, 5
I-38100 Trento
Italy

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