BROADENING THE VIEW OF CORPORATE DIVERSIFICATION: AN INTERNATIONAL PERSPECTIVE
The International Journal of Organizational Analysis
ISSN: 1055-3185
Article publication date: 1 January 1999
Abstract
The relationship between diversification and organizational performance has been the subject of numerous studies over the years (Palepu, 1985; Rumelt, 1974). However, strategy scholars have universally defined diversification using a narrow definition, namely that corporate diversification is a function or reflection of the number of products/businesses in a firm's portfolio. The present study argues that such a definition has become outdated given the impact of international market diversification (Kim, Hwang, & Burgers, 1989; Rugman, 1979). Integrating these two views of corporate diversification, we investigate diversification‐performance differences using market‐ and product‐based measures of diversification and an international sample. Results suggest that the traditional model of diversification may not be applicable to all countries and that international differences exist.
Citation
Hall, E.H. and Lee, J. (1999), "BROADENING THE VIEW OF CORPORATE DIVERSIFICATION: AN INTERNATIONAL PERSPECTIVE", The International Journal of Organizational Analysis, Vol. 7 No. 1, pp. 25-53. https://doi.org/10.1108/eb028893
Publisher
:MCB UP Ltd
Copyright © 1999, MCB UP Limited