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The link between resources and type of diversification: Theory and evidence

The link between resources and type of diversification: Theory and evidence In this paper we theoretically and empirically investigate the idea that firms diversify in part to utilize productive resources which are surplus to current operations. Knowledge of these resources allows us to make predictions about the direction of a firm's expansion. In particular, we suggest that excess physical resources, most knowledge‐based resources, and external financial resources are associated with more related diversification, while internal financial resources are associated with more unrelated diversification. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

The link between resources and type of diversification: Theory and evidence

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References (69)

Publisher
Wiley
Copyright
Copyright © 1991 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.4250120104
Publisher site
See Article on Publisher Site

Abstract

In this paper we theoretically and empirically investigate the idea that firms diversify in part to utilize productive resources which are surplus to current operations. Knowledge of these resources allows us to make predictions about the direction of a firm's expansion. In particular, we suggest that excess physical resources, most knowledge‐based resources, and external financial resources are associated with more related diversification, while internal financial resources are associated with more unrelated diversification.

Journal

Strategic Management JournalWiley

Published: Jan 1, 1991

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