The Influence of mergers on firms' product-mix strategies

Deskripsi

This study draws on the institutional and resource-based theories of the firm and examines whether multi-product firms use mergers as a strategic tool to reconfigure their product-mix toward high-profit products. We propose that mergers facilitate product-mix reconfiguration by relaxing institutional and organizational constraints on resource redeployment. Analysis of data from the US hospital industry reveals that, relative to non-merging hospitals, merging hospitals increased their presence in profitable, insured services but did not shift away from low-profit services used by the uninsured..Printed Journal