Template-Type: ReDIF-Paper 1.0
Author-Name: Hendrikse, G.W.J.
Author-Name-Last: Hendrikse
Author-Name-First: George
Author-Name: Smit, R.
Author-Name-Last: Smit
Author-Name-First: Ruud
Title: On the Evolution of Product Portfolio Coherence of Cooperatives versus Corporations: An Agent-Based Analysis of the Single Origin Constraint
Abstract: Agent-based methodology is adopted to analyze the relationship between governance structure and the evolution of product portfolio. A corporation and a cooperative are distinguished by the single origin constraint. The single origin constraint entails that the product requiring the inputs of the members of a cooperative will never be divested. It is es-tablished that a concentric diversification strategy results in randomly distributed clusters of related products of the product portfolio of corporations, while the single origin constraint of a cooperative is responsible for pulling all prod-ucts together in one cluster. More general, the centripetal effect of one product with infinite lifetime on portfolio com-position dominates the centrifugal effect of products with finite lifetime, regardless the number of products with finite lifetime.
Creation-Date: 2007-08-30
File-URL: https://repub.eur.nl/pub/10505/ERS-2007-055-ORG.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2007-055-ORG
Classification-JEL: L25, M, M13, O32
Keywords: Concentric diversification, agent-based analysis, cooperatives, product lifetime
Handle: RePEc:ems:eureri:10505