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Transaction Costs in Resource Redeployment for Multi-niche Firms

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dc.contributor.authorGiarratana, Marco
dc.contributor.authorSantaló, Juan
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-06-25T09:13:53Z
dc.date.available2025-06-25T09:13:53Z
dc.date.issued2020-02-24
dc.description.abstractTransaction 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
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationGiarratana, M. S., & Santaló, J. (2020). Transaction costs in resource redeployment for multiniche firms. Organization Science, 31(5), 1159-1175. https://doi.org/10.1287/orsc.2019.1351
dc.identifier.doihttps://doi.org/10.1287/orsc.2019.1351
dc.identifier.issn10477039
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3814
dc.issue.number5
dc.journal.titleOrganization Science
dc.language.isoen
dc.page.final1175
dc.page.initial1159
dc.page.total39
dc.publisherInforms PubsOnline
dc.relation.departmentStrategy
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.titleTransaction Costs in Resource Redeployment for Multi-niche Firms
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number31
dspace.entity.typePublication
relation.isAuthorOfPublicatione9508b29-b78b-4aa3-9560-d71aa11f6ee6
relation.isAuthorOfPublicationb15ba486-b637-4a5f-ae06-6a5e367ce510
relation.isAuthorOfPublication.latestForDiscoverye9508b29-b78b-4aa3-9560-d71aa11f6ee6
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