@article{TEXTUAL,
      recid = {5759},
      author = {Gupta, Ranjit and Gianchandani, Maya and Mejia, Cristian  and Gianchandani, Yogesh B. and Kajikawa, Yuya},
      title = {Revealing Integrated Product and Geographical  Diversification Trajectories in Multinational  Pharmaceutical Enterprises},
      journal = {Businesses},
      address = {2023-04-12},
      number = {TEXTUAL},
      abstract = {Multinational Enterprises (MNEs) periodically decide on  both which products to launch (or phase out) and in which  global regions, thereby conducting an integrated  products-countries consideration in diversification  strategies. Over time, these diversification decisions can  have a cumulative impact on the structure. Diversification  literature has primarily focused on one of these two  metrics rather than providing an integrated view; this work  investigates both metrics. Considering deal-making as an  execution instrument of strategies, a comparison of  historic deals of MNEs with their current structure offers  insights into the nature of the diversification strategies  that were pursued. For the most active global deal-making  pharmaceutical firms, we derive normalized deal diversity  profile metrics in terms of their cumulative past  product-countries’ preferences and compare them with the  product-countries’ operations of their current  subsidiaries. We rationalize MNE deal behaviors as means to  shed, acquire and consolidate businesses to enable their  market leadership aspirations. The analysis reveals two  trajectories that have been actively favored in deals: one  directed at niche products offered globally, and one  directed at niche products in selected countries. The  former is characterized by deals in a high number of  countries, whereas the latter by two identifiably different  product concentration levels. In contrast, trajectories  directed at widely diverse products have been disfavored in  deals. Understanding such directions and their pace can aid  in global- or group-level strategy formulation, monitoring  strategy execution, interpreting competitor moves and  designing regional policies.},
      url = {http://knowledge.uchicago.edu/record/5759},
}