The Influence of Mergers on Firms’ Product-mix Strategies
نویسندگان
چکیده
This study draws on the institutional and resource-based theories of the firm and examines whether multi-product firms use mergers as a strategic tool to reconfigure their product-mix toward high-profit products. We propose that mergers facilitate product-mix reconfiguration by relaxing institutional and organizational constraints on resource redeployment. Analysis of data from the U.S. hospital industry reveals that, relative to non-merging hospitals, merging hospitals increased their presence in profitable, insured services but did not shift away from low-profit services used by the uninsured. Copyright 2004 John Wiley & Sons, Ltd.
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