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Unveiling the Effect of Business Area Diversification: Does it Prevent or Promote the Corporate Efficiency of Biopharmaceutical Companies in Korea?

Jaehoon Yang et al.

Science, Technology and Society2025https://doi.org/10.1177/09717218241304448article
AJG 2ABDC B
Weight
0.37

What the paper says

This study investigates the impact of business area diversification across vertical and horizontal dimensions on the efficiency of Korean biopharmaceutical companies. Utilising data from 187 firms and 1,830 observations between 2015 and 2021, this study employs Stochastic Frontier Analysis (SFA) and Meta-Frontier Analysis to examine how diversification strategies influence firm efficiency. The results indicate that vertical diversification, particularly in high-value sectors like biopharmaceutical equipment, shows a strong potential for enhancing firm efficiency. On the other hand, the effects of horizontal diversification vary, with efficiency improvements depending on the level of diversification pursued by each company. These findings offer strategic insights for optimising business diversification in the Korean biopharmaceutical sector and guiding decision-making for long-term competitiveness.

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https://doi.org/https://doi.org/10.1177/09717218241304448

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@article{jaehoon2025,
  title        = {{Unveiling the Effect of Business Area Diversification: Does it Prevent or Promote the Corporate Efficiency of Biopharmaceutical Companies in Korea?}},
  author       = {Jaehoon Yang et al.},
  journal      = {Science, Technology and Society},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1177/09717218241304448},
}

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Unveiling the Effect of Business Area Diversification: Does it Prevent or Promote the Corporate Efficiency of Biopharmaceutical Companies in Korea?

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.