Diversification and resilience of firms in the agrifood supply chain
Material type:
- 1467-8276
Item type | Current library | Vol info | Status | Barcode | |
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Dr VKRV Rao Library | Vol. 106, No. 2 | Not for loan | AI475 |
Are diversified firms more resilient to negative market shocks than specialized firms? We answer this question in the context of the COVID-19 pandemic by analyzing data from small- and medium-sized firms in the U.S. agrifood supply chain. We first develop revenue-based measures of firms' vertical (across supply-chain segment) and horizontal (within supply-chain segment) diversification. We then compare post pandemic outcomes of more diversified and less diversified firms using several inverse-probability weighting techniques. We find that vertical diversification reduces firms' resilience, whereas horizontal diversification increases firms' resilience.
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