Environmental Engineering Reference
In-Depth Information
Figure 1. The summary of the literature review
Lang (2000) examine the relatedness patterns of
U.S. firms between 1979 and 1997 and report an
increasing trend at the vertical integration level
of firms over time.
3
Early application of Fan & Lang's method in-
clude Claessens et al. (2001). This study employed
Fan and Lang's (2000) vertical relatedness and
complementarity variable measures to a sample
of over 10,000 firms in nine East Asian economies
to examine the patterns of vertical relatedness and
complementarity of diversified firms' business
segments. This study sheds light on the differ-
ences and changes in the diversification of the
eight East Asian countries, Japan, and the United
States besides examining the influence of diversi-
fication types on corporate value. Additionally, in
Claessens et al. (2003), they examine the impact
of corporate diversification on productivity and
performance. Schildt et al. (2005) used Fan and
Lang's (2000) method to examine the effect of
downstream vertical integration on explorative
versus exploitative learning outcomes from
external corporate ventures. Rondi and Vannoni
(2005) used forward and backward integration
measures and Italian I-O tables to test the effects
of competitive pressure on product diversification
and refocus on core business strategies of 108
diversified European Union (E.U.) manufactur-
ing leaders that faced the E.U. integration shock.
Recent studies using the method include Fan
and Goyal (2006), who measure vertical relations
in a large sample of mergers between 1962 and
1996. Fukui and Ushijima (2007) investigate the
industry diversification of the largest Japanese
manufacturers. Hendricks et al. (2009) examine
whether business diversification and vertical
relatedness influence the stock market reaction
to supply chain disruptions. Hutzschenreuter and
