Purposive Diversification and Economic Performance

Focusing on product-line diversification, the book explores how large manufacturing firms leverage complementarities in production, marketing, and R&D to enhance economic performance. Professor Scott analyzes U.S. manufacturing data to test hypotheses regarding purposive diversification and its impact on efficiency and R&D investment. The findings contribute to the debate on cooperation versus competition, revealing that industrial performance outcomes vary based on specific circumstances. Insights on business strategy and public policy regarding mergers and cooperative ventures are also provided.