Abstract

Looking at the level of product diversification within plastic and rubber processing machinery industry, it is evident that manufacturing firms define their portfolio merchandise by differently exploiting their internal technological expertise. This article investigates the reasons why companies belonging to the same production sector exploit differently their technological know-how. In particular, with the aim of enriching our knowledge on the diversification process that occurs in a typical manufacturing mechanical firm, this article explores the technological features that drives diversification strategies in the Group XX. This is done by essentially rely on the theoretical contribution of John Sutton (1998) and by using the empirical instrument of the network analysis. The analysis of the diversification choices occurred in Group XX is based on empirical data regarding both the Group and its direct competitors in the plastic and rubber processing machinery industry. This is an innovative way to carry out a firm case study, that lies between a qualitative analysis referred to the individual company and an empirical study concerning an entire industry.