JOURNAL ARTICLE | Management Science | 35 | March 1989
Developing a Global Diversification Measure
Previous measures, focusing either on the international market or on the product dimension of corporate diversification, have been unsatisfactory for analysing global diversification since both dimensions constitute important elements of a firms global diversification strategy. This study constructs a measure in which both dimensions can be captured allowing business strategy researchers to examine corporate diversification in the global market. In accomplishing this task, this study extends the Jacquemin-Berry entropy diversification measure to the global horizon.