This study introduces and tests strategic diversity as a mechanism for examining the strategystructure fit in multinational corporations MNCs. Strategic diversity is operationalized based on Galbraith and Kazanjian's 1986 framework that used a modified valueadded chain and center of gravity concept to explain diversity as a measure of the firm's movement from and around its original center of gravity. The results indicate that strategic diversity is a valid predictor of MNC organizational structure and may be more relevant for issues of strategystructure fit in firms with international interests than the traditional measures of diversification. Future research in this area must consider the implications of strategic diversity for issues of strategystructure fit by examining the effect of strategic diversity on both specific measures of strategy implementation and broad measures of overall economic performance.
International Journal of Commerce and Management – Emerald Publishing
Published: Jan 1, 1991
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