Transaction Costs in Resource Redeployment for Multi-niche Firms

Transaction costs strongly influence diversification dynamics, as predicted by resource theory. A mainstream view links the profitability of diversification with the existence of transaction costs that prevent a firm from trading in fungible, scale-free resources. This study applies a neo-Penrosian...

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Authors: Giarratana, Marco, Santaló, Juan
Format: article
Publication Date:2020
Country:España
Institution:IE
Repository:Repositorio IE
OAI Identifier:oai:repositorio.ie.edu:20.500.14417/3814
Online Access:http://doi.org/10.1287/orsc.2019.1351
https://hdl.handle.net/20.500.14417/3814
Access Level:Open access
Keyword:53 Ciencias Económicas::5311 Organización y dirección de empresas
ODS 9 - Industria, innovación e infraestructura
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spelling Transaction Costs in Resource Redeployment for Multi-niche FirmsGiarratana, MarcoSantaló, Juan53 Ciencias Económicas::5311 Organización y dirección de empresasODS 9 - Industria, innovación e infraestructuraTransaction costs strongly influence diversification dynamics, as predicted by resource theory. A mainstream view links the profitability of diversification with the existence of transaction costs that prevent a firm from trading in fungible, scale-free resources. This study applies a neo-Penrosian perspective to transaction costs, with the notion that diversification may be driven by the redeployment of non-scale-free resources. An empirical analysis, using tax changes in the drink sector as a measure of exogenous demand variation, offers results consistent with the prediction that redeployment is particularly relevant when retailing is concentrated and single-product competition within a focal product niche (e.g., beer) is fragmented. This study also measures redeployment across a portfolio of a multiniche firm when changes in its sales-growth rates for a particular product niche might imply contrasting changes in other product niches. The resulting evidence is consistent with predictions that demand uncertainty, and transaction costs create viableyesPublishedInforms PubsOnlinehttps://ror.org/02jjdwm75202520252020info:eu-repo/semantics/articleapplication/pdfapplication/pdfhttp://doi.org/10.1287/orsc.2019.1351https://hdl.handle.net/20.500.14417/3814reponame:Repositorio IEinstname:IEInglésIE Business SchoolIE UniversityStrategyAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.eninfo:eu-repo/semantics/openAccessoai:repositorio.ie.edu:20.500.14417/38142026-06-15T12:40:57Z
dc.title.none.fl_str_mv Transaction Costs in Resource Redeployment for Multi-niche Firms
title Transaction Costs in Resource Redeployment for Multi-niche Firms
spellingShingle Transaction Costs in Resource Redeployment for Multi-niche Firms
Giarratana, Marco
53 Ciencias Económicas::5311 Organización y dirección de empresas
ODS 9 - Industria, innovación e infraestructura
title_short Transaction Costs in Resource Redeployment for Multi-niche Firms
title_full Transaction Costs in Resource Redeployment for Multi-niche Firms
title_fullStr Transaction Costs in Resource Redeployment for Multi-niche Firms
title_full_unstemmed Transaction Costs in Resource Redeployment for Multi-niche Firms
title_sort Transaction Costs in Resource Redeployment for Multi-niche Firms
dc.creator.none.fl_str_mv Giarratana, Marco
Santaló, Juan
author Giarratana, Marco
author_facet Giarratana, Marco
Santaló, Juan
author_role author
author2 Santaló, Juan
author2_role author
dc.contributor.none.fl_str_mv https://ror.org/02jjdwm75
dc.subject.none.fl_str_mv 53 Ciencias Económicas::5311 Organización y dirección de empresas
ODS 9 - Industria, innovación e infraestructura
topic 53 Ciencias Económicas::5311 Organización y dirección de empresas
ODS 9 - Industria, innovación e infraestructura
description Transaction costs strongly influence diversification dynamics, as predicted by resource theory. A mainstream view links the profitability of diversification with the existence of transaction costs that prevent a firm from trading in fungible, scale-free resources. This study applies a neo-Penrosian perspective to transaction costs, with the notion that diversification may be driven by the redeployment of non-scale-free resources. An empirical analysis, using tax changes in the drink sector as a measure of exogenous demand variation, offers results consistent with the prediction that redeployment is particularly relevant when retailing is concentrated and single-product competition within a focal product niche (e.g., beer) is fragmented. This study also measures redeployment across a portfolio of a multiniche firm when changes in its sales-growth rates for a particular product niche might imply contrasting changes in other product niches. The resulting evidence is consistent with predictions that demand uncertainty, and transaction costs create viable
publishDate 2020
dc.date.none.fl_str_mv 2020
2025
2025
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://doi.org/10.1287/orsc.2019.1351
https://hdl.handle.net/20.500.14417/3814
url http://doi.org/10.1287/orsc.2019.1351
https://hdl.handle.net/20.500.14417/3814
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv IE Business School
IE University
Strategy
dc.rights.none.fl_str_mv Attribution-NonCommercial-NoDerivatives 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Attribution-NonCommercial-NoDerivatives 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Informs PubsOnline
publisher.none.fl_str_mv Informs PubsOnline
dc.source.none.fl_str_mv reponame:Repositorio IE
instname:IE
instname_str IE
reponame_str Repositorio IE
collection Repositorio IE
repository.name.fl_str_mv
repository.mail.fl_str_mv
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