/Users/andrea/_magisterarbeit/korpus/clean/testkorpus/10/file_49.html NN ----------------------------------------- : Diversification NN Argyres NP , , Nicholas NP 1996 CD Capabilities NNS , , technological JJ diversification NN and CC divisionalization NN . SENT Strategic NP Management NP Journal NP , , 17 CD 5 CD . SENT 395 CD 410 CD . SENT The DT hypothesis NN that IN greater JJR R NP D NP diversification NN is VBZ associated VVN with IN less JJR divisionalization NN in IN multidivisional JJ firms NNS is VBZ developed VVN . SENT It PP is VBZ argued VVN , , using VVG transaction NN cost NN theory NN , , that IN the DT extent NN of IN divisionalization NN of IN a DT large JJ firm NN is VBZ indicative JJ of IN its PP$ emphasis NN on IN interdivisional JJ coordination NN , , since IN fewer JJR divisional JJ boundaries NNS reduce VV interdivisional JJ bargaining NN costs NNS . SENT Also RB , , greater JJR interdivisional JJ coordination NN is VBZ required VVN to TO pursue VV strategies NNS aimed VVN at IN broadening VVG technological JJ capabilities NNS . SENT Conversely RB , , less JJR interdivisional JJ coordination NN is VBZ required VVN for IN more JJR specialized JJ R NP D NP , , that WDT is VBZ , , for IN strategies NNS aimed VVN at IN deepening VVG existing JJ capabilities NNS . SENT The DT hypothesis NN finds VVZ support NN in IN patent NN and CC organizational JJ data NNS . SENT Markides NP , , Constantinos NP C NP . SENT Williamson NP , , Peter NP J NP . SENT 1996 CD Corporate JJ diversification NN and CC organizational JJ structure NN . SENT A DT resource NN based VVN view NN . SENT Academy NP of IN Management NP Journal NP , , 39 CD 2 CD . SENT 340 CD 367 CD . SENT It PP is VBZ argued VVN that IN related JJ diversification NN enhances VVZ performance NN only RB when WRB it PP allows VVZ a DT business NN to TO obtain VV preferential JJ access NN to TO strategic JJ assets NNS those DT that WDT are VBP valuable JJ , , rare JJ , , imperfectly RB tradable JJ and CC costly JJ to TO imitate VV . SENT As IN the DT advantage NN this DT access NN affords VVZ will NN decay NN as IN a DT result NN of IN asset NN erosion NN and CC imitation NN by IN single JJ business NN rivals NNS , , in IN the DT long RB run VVN only JJ competences NNS that WDT enable VVP a DT firm NN to TO build VV new JJ strategic JJ assets NNS more RBR quickly RB and CC efficiently RB than IN competitors NNS will MD allow VV it PP to TO sustain VV supernormal JJ profits NNS . SENT Both DT short JJ and CC long JJ run NN advantages NNS are VBP conditional JJ , , however RB , , on IN organizational JJ structures NNS that WDT allow VVP the DT firm's JJ divisions NNS to TO share VV existing VVG strategic JJ assets NNS and CC to TO transfer VV the DT competence NN to TO build VV new JJ ones NNS efficiently RB . SENT Lubatkin NP , , Michael NP H NP . SENT Lane NP , , Peter NP 1996 CD Psst NP . SENT . SENT . SENT The DT merger NN mavens NNS still RB have VHP it PP wrong JJ . SENT Academy NP of IN Management NP Executive NP , , 10 CD 1 CD . SENT 21 CD 39 CD . SENT The DT 1990 CD s PP are VBP witnessing VVG a DT wave NN of IN mergers NNS that WDT rivals VVZ the DT size NN of IN those DT of IN the DT 1980 CD s PP and CC 1960 CD s PP . SENT Proponents NNS whisper NN that IN these DT mergers NNS are VBP fundamentally RB different JJ from IN the DT earlier JJR waves NNS , , that WDT managers NNS have VHP learned VVN their PP$ lessons NNS , , and CC that IN the DT underlying JJ logic NN has VHZ fundamentally RB changes NNS . SENT A DT discussion NN contends VVZ it PP is VBZ useful JJ to TO review VV the DT misinformed VVN beliefs NNS that WDT drove VVD mergers NNS in IN past JJ decades NNS , , and CC as IN these DT merger NN myths NNS continue VVP to TO influence VV managers NNS today NN . SENT The DT myths NNS discussed VVN include VVP . SENT 1 LS . SENT risk NN reduction NN through IN diversification NN , , 2 CD . SENT creating VVG value NN through IN a DT portfolio NN perspective NN , , and CC 3 CD . SENT related JJ mergers NNS are VBP easier JJR than IN unrelated JJ . SENT Some DT guidelines NNS for IN making VVG mergers NNS truly RB strategic JJ include VVP . SENT 1 LS . SENT Keep VV your PP$ eggs NNS in IN similar JJ baskets NNS of IN knowledge NN . SENT 2 LS . SENT Collaborate VVP to TO learn VV . SENT 3 LS . SENT Date NN before IN you PP marry VV . SENT 4 LS . SENT There EX is VBZ more JJR to TO a DT marriage NN than IN a DT courtship NN . SENT Anslinger NP , , Patricia NP L NP . SENT Copeland NP , , Thomas NP E NP 1996 CD Growth NN through IN acquisitions NNS . SENT A DT fresh JJ look NN . SENT Harvard NP Business NP Review NP , , 74 CD 1 CD . SENT 126 CD 135 CD . SENT Many JJ companies NNS today NN find VVP themselves PP with IN a DT surplus NN of IN cash NN and CC a DT shortage NN of IN places NNS to TO use VV it PP . SENT In IN the DT past JJ 5 CD years NNS , , more JJR than IN 1 CD , , 300 CD companies NNS have VHP stashed VVD upwards RB of IN 150 CD billion CD into IN their PP$ coffers NNS . SENT It PP is VBZ suggested VVN that IN companies NNS can MD pursue VV nonsynergistic JJ acquisitions NNS profitably RB . SENT A DT diverse JJ group NN of IN organizations NNS , , including VVG Thermo NP Electron NP , , Sara NP Lee NP , , and CC Clayton NP , , Dubilier NP Rice NP , , have VHP used VVN nonsynergistic JJ acquisitions NNS to TO grow VV dramatically RB . SENT sustained JJ returns NNS of IN 18 CD to TO 35 CD per IN year NN have VHP been VBN captured VVN by IN making VVG nonsynergistic JJ acquisitions NNS . SENT However RB , , making VVG these DT acquisitions NNS work NN is VBZ not RB easy JJ . SENT They PP require VVP senior JJ managers NNS to TO ask VV themselves PP a DT difficult JJ set NN of IN questions NNS . SENT Brush NP , , Thomas NP H NP . SENT 1996 CD Predicted VVD change NN in IN operational JJ synergy NN and CC post NN acquisition NN performance NN of IN acquired VVN businesses NNS . SENT Strategic NP Management NP Journal NP , , 17 CD 1 CD . SENT 1 CD 24 CD . SENT The DT 1980 CD s PP acquisitions NNS are VBP widely RB believed VVN to TO have VH unwound VVN that DT conglomerate NN boom NN of IN the DT 1960 CD s PP through IN horizontal JJ mergers NNS , , yet RB alternative JJ forms NNS of IN unwinding VVG have VH not RB been VBN examined VVN . SENT A DT study NN tests VVZ the DT explanation NN that IN changes NNS in IN the DT opportunity NN to TO share NN resources NNS and CC activities NNS among IN businesses NNS of IN the DT firm NN may MD have VH contributed VVN to TO post VV acquisition NN performance NN improvements NNS in IN the DT recent JJ acquisition NN wave NN . SENT After IN estimating VVG the DT sources NNS of IN competitive JJ performance NN that WDT are VBP due JJ to TO these DT changes NNS within IN each DT of IN 356 CD manufacturing NN industries NNS , , the DT study NN calculates VVZ predictions NNS of IN changes NNS in IN competitive JJ performance NN for IN each DT acquired VVN business NN between IN 1980 CD and CC 1984 CD . SENT The DT predictions NNS are VBP positive JJ and CC in IN turn NN are VBP positively RB associated VVN with IN change NN in IN competitive JJ performance NN between IN 1984 CD and CC 1986 CD . SENT This DT finding NN highlights VVZ the DT importance NN of IN resource NN sharing NN and CC activity NN in IN these DT acquisitions NNS , , and CC leads VVZ to TO the DT re NN examination NN of IN theories NNS for IN the DT 2 CD nd NN acquisition NN wave NN that WDT are VBP supported VVN by IN the DT finding NN of IN horizontal JJ acquisitions NNS . SENT Bettis NP , , Richard NP A NP . SENT Prahalad NP , , C NP . SENT K NP . SENT 1995 RB The DT dominant JJ logic NN . SENT Retrospective NN and CC extension NN . SENT Strategic NP Management NP Journal NP , , 16 CD 1 CD . SENT 5 CD 14 CD . SENT A DT brief JJ review NN is VBZ presented VVN of IN the DT history NN of IN dominant JJ logic NN , , then RB the DT ways NNS in IN which WDT this DT concept NN has VHZ been VBN further RBR developed VVN in IN recent JJ years NNS are VBP described VVN . SENT Discussion NN focuses VVZ on IN the DT dominant JJ logic NN as IN a DT filter NN , , on IN the DT dominant JJ logic NN as IN a DT level NN of IN strategic JJ analysis NN , , on IN the DT unlearning VVG forgetting VVG curve NN , , on IN the DT dominant JJ logic NN as IN an DT emergent JJ property NN of IN organizations NNS as IN complex JJ adaptive JJ systems NNS , , and CC on IN the DT relationship NN between IN organizational JJ stability NN and CC the DT dominant JJ logic NN . SENT Throughout IN emphasis NN is VBZ give VV to TO the DT inherent JJ nonlinear JJ nature NN of IN organizations NNS and CC the DT mental JJ models NNS that IN they PP create VVP . SENT Campbell NP , , Andrew NP . SENT Goold NP , , Michael NP . SENT Alexander NP , , Marcus NP 1995 CD Corporate JJ strategy NN . SENT The DT quest NN for IN parenting VVG advantage NN . SENT Harvard NP Business NP Review NP , , 73 CD 2 CD . SENT 120 CD 132 CD . SENT While IN the DT core JJ competence NN concept NN appealed VVD powerfully RB to TO companies NNS disillusioned VVN with IN diversification NN , , it PP did VVD not RB offer VV any DT practical JJ guidelines NNS for IN developing VVG corporate JJ level NN strategy NN . SENT To TO fill VV the DT gap NN , , the DT parenting VVG framework NN is VBZ proposed VVN . SENT Instead RB of IN looking VVG at IN how WRB businesses NNS relate VVP to TO one CD another DT , , a DT parent NN organization NN should MD look VV at IN how WRB well RB its PP$ skills NNS fit VVP its PP$ businesses NNS needs NNS and CC whether IN owning VVG them PP creates VVZ or CC destroys VVZ value NN . SENT Businesses NNS that WDT seem VVP related JJ , , such JJ as IN minerals NNS and CC oil NN , , often RB require VV completely RB different JJ skills NNS . SENT To TO determine VV the DT fit NN between IN a DT parent NN and CC its PP$ businesses NNS , , corporate JJ strategists NNS should MD look VV at IN 4 CD areas NNS . SENT 1 LS . SENT the DT critical JJ success NN factors NNS of IN the DT business NN , , 2 CD . SENT the DT parenting VVG opportunities NNS in IN the DT business NN , , 3 CD . SENT the DT characteristics NNS of IN the DT parent NN , , and CC 4 CD . SENT the DT financial JJ results NNS . SENT Changing VVG the DT portfolio NN to TO fit VV the DT parent NN organization NN is VBZ usually RB easier JJR than IN trying VVG to TO change VV the DT parent NN to TO fits NNS its PP$ business NN . SENT Ito NP , , Kiyohiko NP 1995 CD Japanese JJ spinoffs NNS . SENT Unexplored JJ survival NN strategies NNS . SENT Strategic NP Management NP Journal NP , , 16 CD 6 CD . SENT 431 CD 446 CD . SENT A DT study NN analyzes VVZ spinoffs NNS of IN Japanese JJ firms NNS and CC the DT use NN of IN the DT spinoff NN as IN an DT instrument NN to TO achieve VV corporate JJ growth NN objectives NNS . SENT The DT initial JJ separation NN of IN the DT organizations NNS and CC its PP$ governance NN mode NN are VBP analyzed VVN in IN the DT context NN of IN transaction NN costs NNS theory NN . SENT Spinoffs NNS may MD be VB created VVN in IN order NN to TO . SENT 1 LS . SENT balance NN costs NNS associated VVN with IN managing VVG diversified JJ businesses NNS , , 2 LS . SENT generate VV growth NN based VVN on IN core JJ competencies NNS of IN a DT firm NN , , and CC 3 CD . SENT pursue VV an DT efficient JJ internal JJ labor NN market NN . SENT In IN a DT changing VVG environment NN , , the DT spinoff NN has VHZ been VBN a DT widely RB used VVN flexible JJ organizational JJ arrangement NN that WDT is VBZ suitable JJ to TO survival NN and CC offers VVZ an DT alternative JJ way NN of IN diversification NN . SENT Li NP , , Jiatao NP 1995 CD Foreign JJ entry NN and CC survival NN . SENT Effects NNS of IN strategic JJ choices NNS on IN performance NN in IN international JJ markets NNS . SENT Strategic NP Management NP Journal NP , , 16 CD 5 CD . SENT 333 CD 351 CD . SENT A DT study NN investigates VVZ effective JJ strategies NNS that WDT can MD reduce VV the DT risk NN of IN failure NN in IN international JJ expansion NN by IN examining VVG the DT entry NN and CC survival NN of IN foreign JJ subsidiaries NNS in IN the DT US NP computer NN and CC pharmaceutical JJ industries NNS over IN the DT 1974 CD 1989 CD period NN . SENT Using VVG a DT hazard NN rate NN model NN , , the DT study NN examines VVZ the DT effects NNS of IN diversification NN strategies NNS , , entry NN strategies NNS , , and CC organizational JJ learning NN and CC experience NN on IN the DT survival NN probabilities NNS of IN foreign JJ subsidiaries NNS . SENT The DT results NNS show VVP a DT higher JJR exit NN rate NN for IN foreign JJ acquisitions NNS and CC joint JJ ventures NNS than IN for IN subsidiaries NNS established VVN through IN greenfield NP investments NNS . SENT The DT results NNS also RB indicate VVP a DT higher JJR exit NN rate NN for IN subsidiaries NNS that WDT diversify VV than IN for IN those DT that WDT stay VVP in IN the DT parent NN firm's NNS main JJ product NN area NN . SENT Markides NP , , Constantinos NP C NP . SENT 1995 CD Diversification NN , , restructuring NN and CC economic JJ performance NN . SENT Strategic NP Management NP Journal NP , , 16 CD 2 CD . SENT 101 CD 118 CD . SENT During IN the DT 1980 CD s PP , , many JJ conglomerates NNS and CC other JJ diversified JJ firms NNS reduced VVD their PP$ diversification NN by IN refocusing NN on IN their PP$ core JJ businesses NNS . SENT A DT study NN provides VVZ an DT economic JJ explanation NN for IN this DT phenomenon NN and CC empirically RB tests VVZ the DT hypotheses NNS that WDT emerge VVP from IN the DT analysis NN . SENT Perhaps RB the DT most RBS important JJ contribution NN of IN this DT study NN is VBZ the DT finding NN that IN refocusing NN in IN the DT 1980 CD s PP by IN the DT over IN diversified JJ firms NNS is VBZ associated VVN with IN profitability NN improvements NNS . SENT This DT finding NN is VBZ consistent JJ with IN the DT available JJ ex JJ ante NN evidence NN on IN refocusing NN , , which WDT shows VVZ that DT refocusing NN is VBZ associated VVN with IN market NN value NN improvements NNS . SENT The DT results NNS of IN this DT study NN also RB lend VVP support NN to TO the DT claim NN by IN Wernerfelt NP and CC Montgomery NP 1988 CD that IN the DT existence NN of IN a DT negative JJ relationship NN between IN diversification NN and CC the DT firm's JJ average NN profitability NN does VVZ not RB necessarily RB imply VV that IN diversifying VVG firms NNS are VBP not RB maximizing VVG profits NNS , , only RB that IN their PP$ marginal JJ returns NNS decrease VVP as IN they PP diversify VV farther RBR afield RB . SENT Robins NP , , James NP . SENT Wiersema NP , , Margarethe NP F NP . SENT 1995 CD A NP resource NN based VVN approach NN to TO the DT multibusiness NN firm NN . SENT Empirical JJ analysis NN of IN portfolio NN interrelationships NNS and CC corporate JJ financial JJ performance NN . SENT Strategic NP Management NP Journal NP , , 16 CD 4 CD . SENT 277 CD 299 CD . SENT The DT resource NN based VVN view NN of IN the DT firm NN has VHZ provided VVN important JJ new JJ insights NNS into IN corporate JJ strategy NN Barney NP , , 1991 CD , , and CC Peteraf NP , , 1993 CD . SENT However RB , , there EX has VHZ been VBN only RB limited VVN empirical JJ research NN linked VVN to TO the DT theory NN Farjoun NP , , 1994 CD . SENT Although IN a DT great JJ deal NN of IN work NN has VHZ been VBN done VVN on IN corporate JJ diversification NN , , the DT measures NNS and CC data NNS typically RB have VHP a DT weak JJ connection NN to TO resource NN based VVN theory NN . SENT Empirical JJ research NN on IN resource NN based VVN corporate JJ strategy NN has VHZ been VBN particularly RB difficult JJ because IN key JJ concepts NNS such JJ as IN tacit JJ knowledge NN or CC capabilities NNS resist VVP direct JJ measurement NN . SENT A DT study NN attempts VVZ to TO narrow VV the DT gap NN between IN theory NN and CC empirical JJ research NN on IN the DT multibusiness NN firm NN . SENT The DT study NN develops VVZ a DT resource NN based VVN approach NN to TO modeling VVG interrelationships NNS among IN businesses NNS and CC applies VVZ it PP to TO the DT analysis NN of IN corporate JJ economic JJ performance NN . SENT This DT approach NN proves VVZ to TO be VB significant JJ in IN explaining VVG the DT financial JJ performance NN of IN large JJ manufacturing NN firms NNS , , and CC it PP promises VVZ to TO be VB an DT important JJ source NN of IN insight NN into IN corporate JJ strategy NN . SENT Taylor NP , , Peter NP . SENT Lowe NP , , Julian NP 1995 CD A DT note NN on IN corporate JJ strategy NN and CC capital NN structure NN . SENT Strategic NP Management NP Journal NP , , 16 CD 5 CD . SENT 411 CD 414 CD . SENT The DT relationships NNS between IN capital NN structure NN and CC corporate JJ strategy NN in IN previous JJ US NP and CC Australian JJ empirical JJ studies NNS , , which WDT use VVP different JJ definitions NNS of IN capital NN structure NN , , and CC hence RB have VH different JJ functional JJ relationships NNS , , are VBP considered VVN . SENT A DT model NN using VVG the DT US NP specification NN with IN the DT Australian JJ data NN is VBZ estimated VVN , , for IN which WDT previous JJ conclusions NNS relating VVG to TO profit NN are VBP confirmed VVN . SENT The DT relationship NN between IN strategy NN and CC capital NN structure NN is VBZ thus RB shown VVN to TO be VB less JJR than IN robust JJ . SENT The DT conclusion NN that IN debt NN equity NN ratios NNS of IN highly RB diversified JJ firms NNS are VBP more RBR strongly RB affected VVN by IN firm JJ level NN variables NNS is VBZ supported VVN . SENT An DT explanation NN that IN the DT capital NN market NN rewards NNS focused VVD firms NNS because IN they PP are VBP easier JJR to TO understand VV and CC price NN is VBZ offered VVN . SENT Wiersema NP , , Margarethe NP F NP . SENT Liebeskind NP , , Julia NP Porter NP 1995 CD The NP effects NNS of IN leveraged JJ buyouts NNS on IN corporate JJ growth NN and CC diversification NN in IN large JJ firms NNS . SENT Strategic NP Management NP Journal NP , , 16 CD 6 CD . SENT 447 CD 460 CD . SENT A DT study NN investigates VVZ the DT effects NNS of IN LBOs NNS on IN corporate JJ growth NN and CC diversification NN in IN large JJ US NP firms NNS which WDT underwent VVD leveraged JJ buyouts NNS during IN the DT 1980 CD s PP . SENT Based VVN on IN the DT analysis NN , , the DT study NN found VVD that IN revenue NN and CC employee NN growth NN are VBP significantly RB lower JJR in IN LBO NN firms NNS than IN in IN control NN firms NNS that WDT remained VVD public JJ . SENT Strategically RB , , it PP found VVD that IN LBO NP firms NNS decreased VVD the DT size NN of IN both CC their PP$ periphery NN and CC core NN businesses NNS more RBR than IN public JJ control NN firms NNS and CC that DT LBO NP firms NNS divested VVD a DT significantly RB higher JJR volume NN of IN periphery NN and CC core NN businesses NNS than IN control NN firms NNS . SENT These DT postbuyout NN differences NNS between IN LBO NN and CC public JJ firms NNS are VBP consistent JJ with IN the DT argument NN that IN LBO NN firms NNS provide VVP managers NNS with IN incentives NNS to TO downsize VV and CC prune VV lines NNS of IN business NN , , resulting VVG in IN reduction NN in IN overall JJ firm NN size NN and CC diversification NN . SENT Buchko NP , , Aaron NP A NP . SENT 1994 CD Conceptualization NN and CC measurement NN of IN environmental JJ uncertainty NN . SENT An DT assessment NN of IN the DT Miles NP and CC Snow NP perceived VVD environmental JJ uncertainty NN scale NN . SENT Academy NP of IN Management NP Journal NP , , 37 CD 2 CD . SENT 410 CD 425 CD . SENT To TO measure VV executives NNS perceived VVN environmental JJ uncertainty NN , , the DT Miles NP and CC Snow NP 1978 CD perceived VVD environmental JJ uncertainty NN questionnaire NN was VBD incorporated VVN into IN a DT survey NN examining VVG business NN strategy NN among IN firms NNS that IN supply NN parts NNS and CC components NNS to TO the DT automobile NN industry NN . SENT The DT survey NN was VBD mailed VVN to TO the DT chief JJ executive NN officers NNS of IN 354 CD supplier NN firms NNS identified VVN from IN the DT ELM NN Guide NP to TO US NP Automotive NP Sourcing VVG . SENT Results NNS supported VVD the DT internal JJ consistency NN of IN the DT scale NN . SENT however RB , , stability NN as IN measured VVN by IN test NN retest NN correlations NNS was VBD inadequate JJ . SENT The DT scale NN did VVD not RB correlate VV with IN criterion NN measures NNS of IN firm NN diversification NN . SENT Implications NNS for IN measurement NN of IN the DT perceived VVN environmental JJ uncertainty NN construct NN are VBP discussed VVN . SENT Hall NP , , Ernest NP H NP Jr NP . SENT St NP John NP , , Caron NP H NP . SENT 1994 CD A NP methodological JJ note NN on IN diversity NN measurement NN . SENT Strategic NP Management NP Journal NP , , 15 CD 2 CD . SENT 153 CD 168 CD . SENT Using VVG analysis NN of IN variance NN , , cluster NN analysis NN , , and CC discriminant NN analysis NN , , a DT study NN investigates VVZ whether IN continuous JJ measures NNS entropy NN and CC product NN count NN differentiate VV between IN diversification NN categories NNS , , whether IN continuous JJ measures NNS converted VVN to TO categories NNS and CC subjectively RB assigned VVN categories NNS classified VVD companies NNS similarly RB , , and CC whether IN continuous JJ and CC categorical JJ measures NNS predicted VVD similar JJ diversity NN performance NN relationships NNS . SENT It PP is VBZ concluded VVN that IN the DT techniques NNS were VBD associated VVN , , but CC did VVD not RB yield VV the DT same JJ performance NN predictions NNS . SENT For IN researchers NNS investigating VVG diversity NN performance NN relationships NNS , , choice NN of IN measurement NN technique NN will MD influence VV research NN results NNS . SENT The DT results NNS suggest VVP that IN attempts NNS to TO combine VV categorical JJ and CC continuous JJ techniques NNS as IN a DT way NN to TO overcome VV the DT limitations NNS of IN both DT methods NNS is VBZ not RB appropriate JJ . SENT Hitt NP , , Michael NP . SENT Hoskisson NP , , Robert NP E NP . SENT Ireland NP , , R NP Duane NP 1994 CD A DT mid JJ range NN theory NN of IN the DT interactive JJ effects NNS of IN international JJ and CC product NN diversification NN on IN innovation NN and CC performance NN . SENT Journal NP of IN Management NP , , 20 CD 2 CD . SENT 297 CD 326 CD . SENT Corporate JJ strategies NNS may MD include VV both DT product NN and CC geographic JJ international JJ diversification NN components NNS . SENT However RB , , little JJ theoretical JJ work NN has VHZ linked VVN the DT interaction NN of IN these DT 2 CD strategies NNS to TO innovation NN and CC performance NN . SENT Theoretical JJ arguments NNS depicting VVG the DT interactive JJ effects NNS of IN international JJ and CC product NN diversification NN are VBP presented VVN . SENT The DT theory NN presented VVD suggests VVZ that DT international JJ diversification NN is VBZ positively RB related VVN to TO both DT innovation NN and CC firm NN performance NN , , and CC positively RB moderates NNS the DT relationship NN between IN product NN diversification NN and CC innovation NN and CC performance NN . SENT The DT central JJ concept NN is VBZ that DT innovation NN is VBZ generally RB facilitated VVN by IN international JJ diversification NN , , while IN the DT general JJ relationship NN between IN product NN diversification NN and CC innovation NN is VBZ negative JJ . SENT Given VVN appropriate JJ firm NN capabilities NNS and CC country NN circumstance NN , , international JJ diversification NN facilitates VVZ innovation NN and CC performance NN . SENT Ingham NP , , Hilary NP . SENT Thompson NP , , Steve NP 1994 CD Wholly RB owned VVN vs NP . SENT collaborative JJ ventures NNS for IN diversifying VVG financial JJ services NNS . SENT Strategic NP Management NP Journal NP , , 15 CD 4 CD . SENT 325 CD 334 CD . SENT Recent JJ empirical JJ work NN has VHZ supported VVN the DT Penrose NP Teece NP view NN that IN firms NNS diversify VV to TO exploit VV fully RB specific JJ assets NNS or CC capabilities NNS . SENT Where WRB transactions NNS costs NNS permit VVP , , these DT economies NNS of IN scope NN may MD be VB realized VVN via IN input NN supply NN contracts NNS among IN producers NNS . SENT However RB , , asset NN specificities NNS frequently RB create VVP transaction NN costs NNS which WDT discourage VVP market NN contracting NN and CC leave VV firms NNS with IN a DT choice NN between IN collaborative JJ ventures NNS and CC wholly RB owned VVN new JJ entry NN . SENT This DT research NN uses VVZ the DT natural JJ experiment NN of IN financial JJ services NNS deregulation NN to TO explore VV the DT collaborative JJ own JJ entry NN choice NN for IN 292 CD new JJ entries NNS in IN 13 CD financial JJ product NN markets NNS . SENT The DT results NNS generally RB support VVP the DT maintained VVN hypotheses NNS that IN specificity NN encourages VVZ full JJ ownership NN while IN collaboration NN is VBZ used VVN to TO ease VV a DT resource NN constraint NN . SENT Ito NP , , Kiyohiko NP . SENT Rose NP , , Elizabeth NP L NP . SENT 1994 RB The DT genealogical JJ structure NN of IN Japanese JJ firms NNS . SENT Parent NN subsidiary NN relationships NNS . SENT Strategic NP Management NP Journal NP , , 15 CD Summer NP . SENT 35 CD 51 CD . SENT A DT study NN analyzes VVZ the DT genealogical JJ structure NN of IN large JJ Japanese JJ firms NNS , , with IN particular JJ emphasis NN on IN the DT relationship NN between IN parent NN firms NNS and CC spinoff NN subsidiaries NNS . SENT The DT wide JJ use NN of IN spinoffs NNS and CC subsidiaries NNS in IN japan NN provides VVZ for IN flexible JJ organizational JJ mutations NNS that WDT appear VVP to TO facilitate VV increased JJ competitiveness NN and CC offer VV the DT opportunity NN to TO obtain VV beenfits NNS through IN a DT deliberate JJ separation NN of IN core JJ competencies NNS . SENT The DT study NN discusses VVZ a DT conceptual JJ framework NN for IN the DT spinoff NN arrangement NN , , the DT results NNS of IN an DT exploratory JJ empirical JJ analsyis NNS of IN the DT relationship NN between IN parent NN and CC subsidiary NN organizations NNS , , and CC implications NNS of IN the DT use NN of IN this DT organizational JJ structure NN . SENT The DT importance NN of IN considering VVG the DT genealogical JJ aspects NNS of IN large JJ Japanese JJ firms NNS in IN strategy NN research NN is VBZ emphasized VVN . SENT Kashlak NP , , Roger NP J NP . SENT Joshi NP , , Maheshkumar NP P NN . SENT 1994 CD Core NP business NN regulation NN and CC dual JJ diversification NN patterns NNS in IN the DT telecommunications NN industry NN . SENT Strategic NP Management NP Journal NP , , 15 CD 8 CD . SENT 603 CD 611 CD . SENT Ameritech NP is VBZ one CD of IN the DT Regional NP Bell NP Operating NP Companies NPS RBOC NP and CC was VBD confronted VVN with IN the DT separate JJ decisions NNS of IN product NN and CC international JJ diversification NN . SENT It PP is VBZ suggested VVN that IN these DT postures NNS are VBP linked VVN to TO external JJ contingencies NNS in IN firms NNS who WP face VVP core JJ business NN regulation NN . SENT A DT technique NN is VBZ developed VVN to TO explain VV dual JJ diversification NN patterns NNS using VVG evidence NN obtained VVN from IN the DT new JJ industry NN comprised VVN of IN the DT RBOCs NP . SENT The DT proposed VVN framework NN appears VVZ to TO satisfactorily RB explain VV RBOC NP diversification NN patterns NNS . SENT Only RB one CD RBOC NP deviated VVD from IN both DT predicted VVN patterns NNS . SENT It PP is VBZ believed VVN that IN the DT technique NN should MD be VB considered VVN exploratory JJ and CC more RBR statistically RB sound JJ work NN is VBZ needed VVN before IN any DT universal JJ claims NNS are VBP made VVN . SENT Koch NP , , James NP V NN . SENT Cebula NP , , Richard NP J NP . SENT 1994 CD In IN search NN of IN excellent JJ management NN . SENT Journal NP of IN Management NP Studies NPS , , 31 CD 5 CD . SENT 681 CD 699 CD . SENT A DT study NN examines VVZ the DT determinants NNS of IN managerial JJ excellence NN as IN perceived VVN by IN corporate JJ CEOs NNS , , directors NNS , , and CC financial JJ analysts NNS in IN Fortune NP magazine's NP annual JJ survey NN of IN the DT best RBS managed JJ American JJ firms NNS in IN 33 CD industries NNS . SENT While IN the DT firms NNS perceived VVN to TO be VB best RBS managed JJ are VBP more RBR profitable JJ and CC less RBR risky JJ , , and CC grow VV faster RBR and CC reward VV their PP$ stockholders NNS more RBR than IN less RBR well RB managed VVN firms NNS , , these DT variables NNS explain VVP only RB about IN 30 CD of IN the DT variance NN in IN management NN ratings NNS . SENT The DT firms NNS perceived VVN to TO be VB best JJS management NN have VHP more JJR involvement NN in IN international JJ markets NNS and CC research NN and CC development NN , , while IN large JJ firm NN size NN and CC firm NN diversification NN reflect VVP negatively RB upon IN perceived VVN managerial JJ quality NN . SENT The DT relative JJ inability NN of IN conventional JJ financial JJ measures NNS of IN firm NN performance NN to TO explain VV perceptions NNS of IN managerial JJ excellence NN underlines VVZ the DT complex JJ nature NN both CC of IN these DT perceptions NNS and CC strategic JJ behavior NN . SENT Markides NP , , Constantinos NP C NP . SENT Williamson NP , , Peter NP J NP . SENT 1994 CD Related JJ diversification NN , , core NN competences NNS and CC corporate JJ performance NN . SENT Strategic NP Management NP Journal NP , , 15 CD Summer NP . SENT 149 CD 165 CD . SENT There EX is VBZ still RB considerable JJ disagreement NN about IN precisely RB how WRB and CC when WRB diversification NN can MD be VB used VVN to TO build VV long RB run VV competitive JJ advantage NN . SENT The DT disagreement NN exists VVZ for IN 2 CD main JJ reasons NNS . SENT First RB , , the DT traditional JJ way NN of IN measuring VVG relatedness NN between IN 2 CD businesses NNS is VBZ incomplete JJ because IN it PP ignores VVZ the DT strategic JJ importance NN and CC similarity NN of IN the DT underlying JJ assets NNS residing VVG in IN these DT businesses NNS . SENT Second RB , , the DT way NN researchers NNS have VHP traditionally RB thought VVN of IN relatedness NN is VBZ limited VVN , , primarily RB because IN it PP has VHZ tended VVN to TO equate VV the DT benefits NNS of IN relatedness NN with IN the DT static JJ exploitation NN of IN economies NNS of IN scope NN , , thus RB ignoring VVG the DT main JJ contribution NN of IN related JJ diversification NN to TO long RB run VV , , competitive JJ advangtage NN . SENT namely RB , , the DT potential NN for IN the DT firm NN to TO expand VV its PP$ stock NN of IN strategic JJ assets NNS and CC create VV new JJ ones NNS more RBR rapidly RB and CC at IN a DT lower JJR cost NN than IN rivals NNS that WDT are VBP not RB diversifed VVN across IN related JJ businesses NNS . SENT An DT empirical JJ test NN supports VVZ the DT view NN that IN strategic JJ relatedness NN is VBZ superior JJ to TO market NN relatedness NN in IN predicting VVG when WRB related JJ diversifiers NNS outperform VVP unrelated JJ ones NNS . SENT Mitchell NP , , Will NP . SENT Shaver NP , , J NP Myles NP . SENT Yeung NP , , Bernard NP 1994 CD Foreign NP entrant NN survival NN and CC foreign JJ market NN share NN . SENT Canadian JJ companies NNS experience NN in IN United NP States NPS medical JJ sector NN markets NNS . SENT Strategic NP Management NP Journal NP , , 15 CD 7 CD . SENT 555 CD 567 CD . SENT A DT study NN shows VVZ that IN successful JJ foreign JJ market NN entry NN is VBZ related VVN to TO the DT extent NN of IN foreign JJ presence NN in IN an DT industry NN at IN the DT time NN of IN entry NN . SENT Survival NN of IN 31 CD Canadian JJ based VVN businesses NNS that WDT entered VVD 24 CD US NP medical JJ sector NN markets NNS between IN 1968 CD and CC 1989 CD tended VVN to TO be VB somewhat RB longer JJR in IN product NN markets NNS in IN which WDT foreign JJ based VVN businesses NNS held VVD a DT moderate JJ market NN share NN when WRB the DT Canadian JJ businesses NNS entered VVD than IN in IN low JJ and CC high JJ foreign JJ share NN product NN markets NNS . SENT The DT result NN controls VVZ several JJ other JJ industry NN and CC business NN level NN factors NNS , , including VVG industry NN concentration NN , , entry NN year NN , , corporate JJ size NN , , related JJ diversification NN , , entry NN mode NN , , and CC service NN sector NN status NN . SENT Lamont NP , , Bruce NP T NN . SENT Williams NP , , Robert NP J NP . SENT Hoffman NP , , James NP J NP . SENT 1994 CD Performance NN during IN M NP form NN reorganization NN and CC recovery NN time NN . SENT The DT effects NNS of IN prior JJ strategy NN and CC implementation NN speed NN . SENT Academy NP of IN Management NP Journal NP , , 37 CD 1 CD . SENT 153 CD 166 CD . SENT The DT long JJ term NN performance NN benefits NNS of IN companies NNS reorganizing VVG to TO an DT M NP form NN or CC multidivisional JJ structure NN , , in IN which WDT strategic JJ decisions NNS are VBP centralized VVN and CC operating NN decisions NNS are VBP decentralized JJ , , are VBP well RB documented VVN . SENT In IN the DT short JJ term NN , , however RB , , such PDT a DT major JJ restructuring NN may MD be VB quite RB disruptive JJ . SENT Taking VVG a DT different JJ tack NN from IN previous JJ work NN on IN the DT performance NN effects NNS of IN M NP form NN adoption NN , , a DT study NN examined VVD performance NN deterioration NN during IN reorganization NN periods NNS and CC the DT subsequent JJ time NN required VVN for IN performance NN to TO recover VV to TO prereorganization NN levels NNS . SENT Seventy CD six CD firms NNS were VBD studied VVN . SENT These DT firms NNS were VBD pursuing VVG 3 CD diversification NN strategies NNS . SENT vertical JJ , , related JJ and CC unrelated JJ . SENT Prior JJ strategy NN and CC implementation NN speed NN were VBD found VVN to TO affect VV both DT transition NN performance NN and CC recovery NN time NN . SENT Lubatkin NP , , Michael NP . SENT Chatterjee NP , , Sayan NP 1994 CD Extending VVG modern JJ portfolio NN theory NN into IN the DT domain NN of IN corporate JJ diversification NN . SENT Does VVZ it PP apply VV . SENT Academy NP of IN Management NP Journal NP , , 37 CD 1 CD . SENT 109 CD 136 CD . SENT Executives NNS frequently RB justify VV a DT diversification NN move NN by IN claiming VVG that IN it PP reduces VVZ a DT firm's JJ exposure NN to TO cyclical JJ and CC secular JJ uncertainties NNS or CC risk NN . SENT However RB , , very RB little RB is VBZ known VVN about IN the DT relationship NN between IN corporate JJ diversification NN and CC risk NN . SENT Much RB of IN what WP is VBZ known VVN is VBZ borrowed VVN from IN modern JJ portfolio NN theory NN . SENT A DT study NN offers VVZ evidence NN that IN the DT evolving VVG theory NN of IN strategic JJ management NN better RBR explains VVZ the DT risk NN outcomes NNS of IN corporate JJ diversification NN than IN modern JJ portfolio NN theory NN . SENT The DT notions NNS that IN diversification NN lowers VVZ a DT firm's JJ unsystematic JJ risk NN but CC does VVZ not RB affect VV its PP$ systematic JJ risk NN were VBD tested VVN while IN controlling VVG for IN other JJ factors NNS that IN influence NN risk NN . SENT The DT findings NNS show VVP that IN the DT relationship NN between IN corporate JJ diversification NN and CC both DT forms NNS of IN stock NN return NN risk NN generates VVZ a DT U NP shaped JJ graph NN . SENT Thus RB , , an DT important JJ way NN for IN corporations NNS to TO minimize VV risk NN is VBZ to TO diversify VV into IN similar JJ businesses NNS rather RB than IN into IN identical JJ or CC very RB different JJ businesses NNS . SENT Ollinger NP , , Michael NP 1994 CD The NP limits NNS of IN growth NN of IN the DT multidivisional JJ firm NN . SENT A DT case NN study NN of IN the DT U NP . SENT S NP . SENT oil NN industry NN from IN 1930 CD 90 CD . SENT Strategic NP Management NP Journal NP , , 15 CD 7 CD . SENT 503 CD 520 CD . SENT Some DT scholars NNS , , including VVG Chandler NP 1977 CD and CC Penrose NP 1959 CD , , believe VVP that DT firms NNS grow VVP by IN transferring VVG inimitable JJ marketing NN , , production NN , , and CC research NN skills NNS from IN one CD line NN of IN business NN to TO another DT . SENT Extending VVG this DT view NN and CC emphasizing VVG the DT role NN of IN the DT central JJ office NN of IN a DT multidivisional JJ firm NN to TO transfer VV administrative JJ skills NNS , , Williamson NP 1975 CD argues VVZ that DT competition NN among IN business NN units NNS within IN the DT firm NN mimics VVZ a DT competitive JJ capital NN market NN and CC leads VVZ to TO an DT efficient JJ allocation NN of IN resources NNS . SENT Coase NP 1937 CD , , however RB , , argues VVZ that DT firm NN size NN is VBZ limited VVN by IN the DT costs NNS of IN organizing VVG diverse JJ transactions NNS and CC Chandler NP 1991 CD claims NNS that DT growth NN is VBZ constrained VVN by IN the DT technical JJ and CC marketing NN expertise NN of IN the DT top JJ managers NNS . SENT This DT study NN demonstrates VVZ that IN the DT scope NN of IN the DT multidivisional JJ firm NN is VBZ limited VVN by IN the DT transferability NN of IN firm JJ specific JJ skills NNS and CC the DT efficiency NN of IN capital NN markets NNS . SENT Support NN comes VVZ from IN a DT case NN study NN of IN 19 CD oil NN companies NNS over IN the DT 1930 CD 1990 CD period NN . SENT Harrison NP , , Jeffrey NP S NP . SENT Hall NP , , Ernest NP H NP Jr NP . SENT Nargundkar NP , , Rajendra NP 1993 CD Resource NP allocation NN as IN an DT outcropping VVG of IN strategic JJ consistency NN . SENT Performance NN implications NNS . SENT Academy NP of IN Management NP Journal NP , , 36 CD 5 CD . SENT 1026 CD 1051 CD . SENT Theory NN and CC empirical JJ evidence NN are VBP presented VVN to TO support VV a DT resource NN based VVN view NN of IN the DT relationship NN between IN diversification NN and CC performance NN . SENT Similarities NNS in IN financial JJ resource NN allocations NNS across IN the DT lines NNS of IN business NN of IN diversified JJ firms NNS may MD indicate VV corporate JJ strategic JJ consistency NN , , which WDT may MD lead VV to TO superior JJ corporate JJ performance NN . SENT In IN support NN of IN this DT argument NN , , the DT variance NN in IN R NP D NP intensity NN across IN the DT lines NNS of IN business NN of IN 96 CD diversified JJ firms NNS was VBD found VVN to TO be VB inversely RB related VVN to TO industry NN adjusted JJ return NN on IN assets NNS . SENT However RB , , no DT relationship NN was VBD found VVN for IN capital NN intensity NN . SENT A DT consistently RB high JJ emphasis NN on IN R NP D NP across IN closely RB related VVN lines NNS of IN business NN can MD provide VV strategic JJ advantages NNS that WDT are VBP unavailable JJ to TO diversified JJ firms NNS that WDT do VVP no RB display VV such JJ consistency NN . SENT These DT results NNS provide VVP partial JJ support NN for IN the DT usefulness NN of IN a DT resource NN based VVN approach NN to TO the DT study NN of IN diversification NN strategy NN . SENT Hoskisson NP , , Robert NP E NP . SENT Hill NP , , Charles NP W NP L NP . SENT Kim NP , , Hicheon NP 1993 CD The DT multidivisional JJ structure NN . SENT Organizational JJ fossil NN or CC source NN of IN value NN . SENT Journal NP of IN Management NP , , 19 CD 2 CD . SENT 269 CD 298 CD . SENT The DT multidivisional JJ M NP form NN structure NN has VHZ been VBN variously RB characterized VVN as IN the DT most RBS significant JJ organizational JJ innovation NN in IN the DT 20 CD th NN century NN and CC as IN an DT organizational JJ fossil NN that WDT is VBZ increasingly RB irrelevant JJ in IN the DT modern JJ world NN . SENT A DT consideration NN of IN research NN on IN the DT M NP form NN is VBZ done VVN to TO . SENT 1 LS . SENT evaluate VV 3 CD perspectives NNS transaction NN cost NN , , strategic JJ management NN , , and CC sociological JJ relating VVG to TO the DT M NP form NN , , 2 CD . SENT examine VV what WP the DT empirical JJ evidence NN finds VVZ about IN relationships NNS proposed VVN by IN these DT perspectives NNS , , and CC 3 CD . SENT develop VV a DT model NN that WDT summarizes VVZ the DT relationships NNS proposed VVN among IN these DT perspectives NNS and CC make VV suggestions NNS about IN future JJ theory NN building NN and CC areas NNS where WRB further VV empirical JJ work NN is VBZ needed VVN . SENT The DT cumulative JJ evidence NN on IN M NP form NN structures NNS is VBZ that DT corporate JJ form NN does VVZ make VV a DT difference NN in IN organizational JJ performance NN . SENT However RB , , the DT accumulated VVN body NN of IN research NN evidence NN on IN diversification NN suggests VVZ that DT diversification NN does VVZ little JJ to TO create VV economic JJ value NN . SENT Hoskisson NP , , Robert NP E NP . SENT Hitt NP , , Michael NP A NP . SENT Johnson NP , , Richard NP A NP . SENT Moesel NP , , Douglas NP D NP . SENT 1993 CD Construct NN validity NN of IN an DT objective JJ entropy NN categorical JJ measure NN of IN diversification NN strategy NN . SENT Strategic NP Management NP Journal NP , , 14 CD 3 CD . SENT 215 CD 235 CD . SENT A DT study NN measures VVZ the DT construct VV validity NN of IN an DT objective JJ entropy NN approach NN to TO the DT measurement NN of IN diversification NN strategy NN . SENT The DT results NNS indicate VVP strong JJ convergent JJ , , discriminant NN , , and CC criterion NN related JJ validity NN for IN the DT entropy NN measure NN of IN diversification NN . SENT In IN particular JJ , , support NN for IN the DT entropy NN measure NN of IN diversification NN strategy NN was VBD demonstrated VVN through IN associations NNS with IN . SENT 1 LS . SENT the DT Rumelt NP subjective JJ measure NN of IN diversification NN convergent JJ validity NN , , 2 CD . SENT size NN , , debt NN , , and CC R NP D NP intensity NN discriminant NN validity NN , , and CC 3 CD . SENT accounting NN and CC market NN based VVN performance NN criterion NN related JJ validity NN . SENT It PP may MD be VB more RBR appropriate JJ to TO use VV the DT diversification NN factor NN with IN both CC the DT entropy NN and CC Rumelt NP subjective JJ measures NNS for IN maximum JJ accuracy NN . SENT However RB , , using VVG either CC alone RB would MD also RB be VB acceptable JJ . SENT In IN addition NN , , the DT standard JJ industrial JJ classification NN SIC JJ measure NN may MD be VB appropriate JJ in IN more JJR limited JJ circumstances NNS . SENT Kim NP , , W NP Chan NP . SENT Hwang NP , , Peter NP . SENT Burgers NNS , , Willem NP P NN . SENT 1993 CD Multinationals NNS diversification NN and CC the DT risk NN return NN trade NN off RB . SENT Strategic NP Management NP Journal NP , , 14 CD 4 CD . SENT 275 CD 286 CD . SENT A DT study NN advances NNS a DT theoretical JJ rationale NN to TO explain VV Bowman's NP paradox NN 1980 CD that IN firms NNS with IN high JJ returns NNS can MD have VH low JJ risk NN . SENT Drawing VVG on IN the DT large JJ body NN of IN international JJ management NN research NN , , it PP is VBZ argued VVN that IN global JJ market NN diversification NN , , which WDT provides VVZ firms NNS with IN 3 CD distinct JJ options NNS and CC opportunities NNS over IN domestic JJ firms NNS , , can MD explain VV the DT high JJ return NN low JJ risk NN profile NN . SENT There EX exists VVZ no DT strong JJ theoretical JJ rational JJ in IN support NN of IN either DT related JJ or CC unrelated JJ product NN diversification NN generating VVG such PDT a DT favorable JJ risk NN return NN profile NN . SENT The DT results NNS of IN the DT study NN , , which WDT are VBP based VVN on IN the DT diversification NN experiences VVZ of IN 125 CD multinational JJ corporations NNS , , reveal VVP the DT important JJ role NN that IN global JJ market NN diversification NN plays VVZ in IN the DT joint JJ management NN of IN corporate JJ risk NN and CC return NN . SENT Lubatkin NP , , Michael NP . SENT Merchant NN , , Hemant NP . SENT Srinivasan NP , , Narasimhan NP 1993 CD Construct VV validity NN of IN some DT unweighted JJ product NN count NN diversification NN measures NNS . SENT Strategic NP Management NP Journal NP , , 14 CD 6 CD . SENT 433 CD 449 CD . SENT In IN a DT study NN , , current JJ 1980 CD 1987 CD diversification NN and CC corporate JJ risk NN return NN data NNS were VBD used VVN to TO compare VV Rumelt's NP 1974 CD classification NN measure NN and CC several JJ unweighted JJ product NN count NN measures VVZ as RB to TO their PP$ ability NN to TO demonstrate VV construct VV validity NN . SENT Convergent JJ and CC predictive JJ validity NN assessments NNS were VBD conducted VVN of IN 3 CD unweighted JJ product NN count NN measures NNS and CC the DT 2 CD dimensional JJ unweighted JJ product NN count NN measure NN which WDT Varadarajan NP and CC Ramanujam NP 1987 CD recently RB proposed VVN . SENT The DT discriminatory JJ power NN of IN the DT different JJ diversification NN measures NNS and CC their PP$ internal JJ consistency NN were VBD also RB assessed VVN . SENT All DT empirical JJ tests NNS were VBD conducted VVN with IN 3 CD lists NNS of IN firms NNS , , each DT drawn VVN over IN an DT 8 CD year NN time NN frame NN , , and CC with IN 2 CD types NNS of IN SIC JJ diversification NN data NNS . SENT Two CD of IN the DT 3 CD continuous JJ measures NNS were VBD found VVN to TO correspond VV strongly RB to TO Rumelt's NP categorial JJ measures NNS , , suggesting VVG that IN these DT 2 CD objective NN and CC easy JJ to TO calculate VV measures NNS are VBP better RBR suited VVN for IN large JJ sample NN , , strategy NN research NN than IN has VHZ previous JJ been VBN assumed VVN . SENT No DT support NN was VBD found VVN for IN the DT 2 CD dimensional JJ measure NN . SENT Miles NNS , , Grant NP . SENT Snow NP , , Charles NP C NP . SENT Sharfman NP , , Mark NP P NN . SENT 1993 CD Industry NN variety NN and CC performance NN . SENT Strategic NP Management NP Journal NP , , 14 CD 3 CD . SENT 163 CD 177 CD . SENT A DT study NN advances NNS a DT nascent JJ perspective NN in IN the DT strategic JJ management NN literature NN through IN a DT focus NN on IN the DT beneficial JJ effects NNS of IN competition NN among IN firms NNS in IN an DT industry NN . SENT The DT overall JJ purpose NN of IN the DT study NN is VBZ to TO provide VV a DT theoretical JJ foundation NN for IN the DT study NN of IN the DT mutual JJ gains NNS associated VVN with IN industry NN competition NN . SENT Because IN of IN its PP$ importance NN to TO several JJ different JJ organizational JJ theories NNS , , the DT concept NN of IN variety NN is VBZ examined VVN as IN a DT potential JJ source NN of IN interfirm NN benefits NNS . SENT The DT influence NN of IN variety NN is VBZ observed VVN in IN 12 CD industries NNS , , 4 LS each DT from IN the DT growth NN , , mature VVP , , and CC decline NN stages NNS of IN the DT life NN cycle NN . SENT Study NN results NNS show VVP that DT industry NN variety NN and CC performance NN are VBP positively RB related VVN , , suggesting VVG that IN interfirm NN benefits NNS are VBP most RBS feasible JJ in IN industries NNS characterized VVN by IN diversity NN among IN firms NNS competitive JJ strategies NNS . SENT As IN industries NNS move VVP through IN the DT life NN cycle NN , , variety NN decreases NNS , , implying VVG that IN both DT strategists NNS and CC policymakers NNS need VVP to TO consider VV the DT impact NN on IN aggregate JJ variety NN when WRB evaluating VVG prescriptions NNS for IN the DT revitalization NN of IN declining VVG industries NNS . SENT Nayyar NP , , Praveen NP R NP . SENT 1993 CD Stock NP market NN reactions NNS to TO related JJ diversification NN moves NNS by IN service NN firms NNS seeking VVG benefits NNS from IN information NN asymmetry NN and CC economies NNS of IN scope NN . SENT Strategic NP Management NP Journal NP , , 14 CD 8 CD . SENT 569 CD 591 CD . SENT In IN the DT US NP , , services NNS account VVP for IN nearly RB 75 CD of IN employment NN , , 65 CD of IN gross JJ national JJ product NN GNP NN , , and CC nearly RB 90 CD of IN new JJ jobs NNS . SENT Service NN firms NNS may MD seek VV benefits NNS from IN information NN asymmetry NN and CC economies NNS of IN scope NN by IN diversifying VVG . SENT Each DT source NN of IN benefit NN is VBZ based VVN on IN different JJ underlying JJ mechanisms NNS and CC each DT is VBZ affected VVN differently RB by IN implementation NN difficulties NNS and CC service NN characteristics NNS . SENT Previous JJ research NN , , however RB , , has VHZ not RB analyzed VVD the DT relative JJ performance NN effects NNS of IN these DT 2 CD very JJ different JJ sources NNS of IN benefits NNS for IN related JJ diversified JJ service NN firms NNS . SENT An DT integrative JJ framework NN is VBZ used VVN including VVG these DT aspects NNS to TO examine VV the DT relative JJ performance NN effects NNS of IN benefits NNS from IN information NN asymmetry NN and CC economies NNS of IN scope NN in IN service NN firms NNS . SENT Nayyar NP , , Praveen NP R NP . SENT Kazanjian NP , , Robert NP K NP . SENT 1993 CD Organizing NP to TO attain VV potential JJ benefits NNS from IN information NN asymmetries NNS and CC economies NNS of IN scope NN in IN related JJ diversified JJ firms NNS . SENT Academy NP of IN Management NP Review NP , , 18 CD 4 CD . SENT 735 CD 759 CD . SENT Diversified JJ firms NNS can MD obtain VV benefits NNS from IN information NN asymmetries NNS and CC economies NNS of IN scope NN . SENT Each DT source NN of IN benefits NNS is VBZ based VVN on IN different JJ underlying JJ mechanisms NNS . SENT Attaining VVG benefits NNS relies VVZ on IN the DT adoption NN of IN appropriate JJ organization NN structures NNS and CC processes NNS , , which WDT should MD be VB designed VVN on IN the DT basis NN of IN the DT organizational JJ requirements NNS of IN each DT source NN of IN benefits NNS . SENT The DT contingency NN theory NN linking VVG diversification NN strategy NN to TO organization NN design NN is VBZ extended VVN by IN proposing VVG that IN the DT particular JJ source NN of IN benefits NNS being VBG pursued VVN by IN related JJ diversified JJ firms NNS causes VVZ variations NNS in IN the DT multidivisional JJ form NN of IN organization NN . SENT Propositions NNS derived VVN from IN a DT consideration NN of IN the DT structure NN and CC processes NNS required VVN to TO successfully RB realize VV potential JJ benefits NNS are VBP presented VVN . SENT Consistent JJ with IN Govindarajan NP 1986 CD , , Hoskisson NP 1987 CD , , and CC Kazanjian NP and CC Drazin NP 1987 CD , , the DT importance NN of IN strategy NN as IN a DT critical JJ contingency NN for IN organization NN design NN is VBZ emphasized VVN . SENT Seth NP , , Anju NP . SENT Easterwood NP , , John NP 1993 CD Strategic NP redirection NN in IN large JJ management NN buyouts NNS . SENT The DT evidence NN from IN post NN buyout NN restructuring NN activity NN . SENT Strategic NP Management NP Journal NP , , 14 CD 4 CD . SENT 251 CD 273 CD . SENT A DT study NN examines VVZ the DT nature NN of IN post NN transaction NN restructuring NN activities NNS for IN 32 CD large JJ US NP corporations NNS that WDT underwent VVD management NN buyouts NNS MBO NP between IN 1983 CD and CC 1989 CD . SENT Evidence NN is VBZ provided VVN on IN the DT extent NN and CC type NN of IN divestment NN and CC acquisition NN activities NNS under IN private JJ ownership NN , , and CC outcomes NNS associated VVN with IN MBOs NP and CC the DT longevity NN of IN the DT buyout NN organization NN are VBP documented VVN . SENT The DT study NN also RB investigates VVZ the DT claim NN that IN buyouts NNS are VBP primarily RB mechanisms NNS for IN breaking VVG up RP public JJ corporations NNS and CC selling VVG the DT pieces NNS to TO related JJ acquirers NNS . SENT The DT balance NN of IN the DT evidence NN indicates VVZ that IN restoring VVG strategic JJ focus NN is VBZ an DT essential JJ function NN of IN the DT buyout NN for IN these DT large JJ firms NNS . SENT However RB , , the DT evidence NN also RB indicates VVZ that IN the DT buyout NN organization NN does VVZ continue VV to TO operate VV significant JJ parts NNS of IN the DT prebuyout NN firm NN . SENT Amburgey NP , , Terry NP L NP . SENT Miner NP , , Anne NP S NP . SENT 1992 CD Strategic JJ Momentum NN . SENT The DT Effects NNS of IN Repetitive JJ , , Positional JJ , , and CC Contextual JJ Momentum NN on IN Merger NN Activity NN . SENT Strategic NP Management NP Journal NP , , 13 CD 5 CD . SENT 335 CD 348 CD . SENT Three CD types NNS of IN strategic JJ momentum NN are VBP repetitive JJ , , positional JJ , , and CC contextual JJ . SENT Repetitive JJ momentum NN occurs VVZ when WRB organizations NNS repeat VV their PP$ previous JJ strategic JJ actions NNS . SENT Positional JJ momentum NN occurs VVZ when WRB organizations NNS take VVP actions NNS that WDT sustain VV or CC extend VV existing VVG strategic JJ positions NNS . SENT Contextual JJ momentum NN occurs VVZ when WRB general JJ traits NNS , , such JJ as IN organizational JJ structure NN , , shape VVP strategic JJ action NN in IN a DT consistent JJ fashion NN . SENT An DT event NN history NN analysis NN of IN 262 CD large JJ firms NNS over IN a DT period NN of IN 29 CD years NNS indicates VVZ that IN . SENT 1 LS . SENT the DT occurrence NN of IN mergers NNS tends VVZ to TO increase VV the DT rate NN of IN mergers NNS of IN the DT same JJ type NN repetitive JJ momentum NN , , and CC 2 CD . SENT organizational JJ decentralization NN increases VVZ the DT rate NN of IN diversifying VVG mergers NNS contextual JJ momentum NN . SENT Product NN market NN diversification NN was VBD found VVN to TO increase VV the DT probability NN of IN product NN extension NN mergers NNS , , but CC not RB conglomerate NN mergers NNS , , only RB partly RB confirming VVG positional JJ momentum NN . SENT The DT findings NNS indicate VVP that DT internal JJ momentum NN can MD affect VV merger NN activity NN . SENT Chatterjee NP , , Sayan NP . SENT Blocher NP , , James NP D NP . SENT 1992 CD Measurement NN of IN Firm NN Diversification NN . SENT Is VBZ it PP Robust JJ . SENT Academy NP of IN Management NP Journal NP , , 35 CD 4 CD . SENT 874 CD 888 CD . SENT Analysis NN is VBZ presented VVN of IN the DT convergent JJ validity NN of IN Rumelt's NP categorical JJ classification NN of IN types NNS of IN business NN diversification NN across IN different JJ data NN sources NNS and CC variations NNS from IN Rumelt's NP method NN . SENT The DT convergent JJ and CC predictive JJ validity NN of IN Rumelt's NP classification NN and CC continuous JJ measures NNS of IN diversification NN are VBP also RB assessed VVN . SENT Also RB investigated VVN is VBZ the DT ability NN of IN continuous JJ measures NNS to TO discriminate JJ between IN Rumelt's NP categories NNS . SENT The DT results NNS suggest VVP weak JJ convergent JJ validity NN for IN Rumelt's NP measures NNS but CC good JJ discriminating VVG power NN of IN continuous JJ measures NNS to TO discriminate JJ between IN Rumelt's NP measures NNS . SENT The DT lack NN of IN strong JJ convergent JJ validity NN in IN Rumelt's NP classifications NNS affects VVZ the DT dominant JJ and CC single JJ business NN categories NNS more RBR than IN the DT related JJ and CC unrelated JJ categories NNS , , which WDT lessens VVZ any DT problems NNS in IN testing VVG the DT relatedness NN principle NN . SENT Finally RB , , the DT measures NNS demonstrate VVP predictive JJ validity NN with IN specific JJ performance NN criteria NNS . SENT Davis NP , , Peter NP S NP . SENT Robinson NP , , Richard NP B NP . SENT , , Jr NP . SENT Pearce NP , , John NP A NP . SENT , , II NP . SENT Park NP , , Seung NP Ho NP 1992 CD Business NP Unit NP Relatedness NN and CC Performance NN . SENT A DT Look NN at IN the DT Pulp NP and CC Paper NP Industry NP . SENT Strategic NP Management NP Journal NP , , 13 CD 5 CD . SENT 349 CD 361 CD . SENT A DT study NN examined VVD the DT perspectives NNS of IN business NN unit NN managers NNS to TO assess VV how WRB the DT relationship NN between IN the DT 2 CD primary JJ types NNS of IN relatedness NN production NN and CC marketing NN are VBP emphasized VVN at IN the DT business NN unit NN level NN and CC how WRB these DT types NNS of IN relatedness NN affect VVP business NN unit NN performance NN . SENT The DT data NNS were VBD collected VVN by IN questionnaires NNS from IN key JJ informants NNS who WP manage VVP 362 CD business NN units NNS in IN the DT US NP pulp NN and CC paper NN industry NN . SENT The DT results NNS show VVP that IN a DT high JJ level NN of IN marketing NN relatedness NN is VBZ associated VVN with IN high JJ sales NNS growth NN and CC a DT high JJ level NN of IN production NN relatedness NN with IN high JJ return NN on IN assets NNS . SENT When WRB sales NNS growth NN is VBZ the DT primary JJ goal NN , , a DT high JJ emphasis NN on IN market NN relatedness NN produces VVZ high JJ sales NNS growth NN coupled VVN with IN respectable JJ profitability NN . SENT When WRB profitability NN is VBZ the DT primary JJ goal NN , , high JJ production NN relatedness NN produces VVZ the DT best JJS results NNS . SENT Contrary JJ to TO expectations NNS , , the DT single JJ businesses NNS had VHD higher JJR growth NN than IN the DT related JJ businesses NNS , , although IN the DT differences NNS were VBD not RB statistically RB significant JJ . SENT Only JJ business NN unit NN size NN had VHD a DT significant JJ relationship NN to TO sales NNS growth NN . SENT Davis NP , , Rachel NP . SENT Duhaime NP , , Irene NP M NP . SENT 1992 CD Diversification NN , , Vertical JJ Integration NP , , and CC Industry NP Analysis NP . SENT New JJ Perspectives NNS and CC Measurement NN . SENT Strategic NP Management NP Journal NP , , 13 CD 7 CD . SENT 511 CD 524 CD . SENT The DT use NN of IN industry NN segment NN and CC establishment NN data NNS are VBP considered VVN for IN 3 CD issues NNS of IN significant JJ interest NN to TO strategic JJ management NN practitioners NNS and CC researchers NNS . SENT 1 LS . SENT assessment NN of IN strategic JJ diversity NN , , 2 CD . SENT analysis NN of IN industry NN trends NNS , , and CC 3 CD . SENT evaluation NN of IN the DT presence NN of IN vertical JJ integration NN . SENT An DT extensive JJ analysis NN of IN the DT COMPUSTAT NP II NP database NN and CC the DT TRINET NP database NN was VBD conducted VVN in IN all DT 3 CD research NN contexts NNS . SENT With IN proper JJ use NN of IN COMPUSTAT NP II NP data NNS , , researchers NNS can MD detect VV forward RB and CC backward RB vertical JJ integration NN within IN firms NNS and CC within IN segments NNS of IN firms NNS . SENT The DT database NN can MD be VB used VVN quite RB effectively RB to TO calculate VV Herfindahl NP , , entropy NN , , and CC other JJ measures NNS . SENT COMPUSTAT NP II NP industry NN segment NN data NNS is VBZ quite RB satisfactory JJ for IN the DT study NN of IN industry NN trends NNS . SENT The DT TRINET NP database NN lends VVZ itself PP to TO use VV in IN the DT calculation NN of IN diversification NN indexes NNS as RB well RB as RB in IN the DT calculation NN of IN industry NN benchmarks NNS . SENT However RB , , TRINET's NP limitations NNS include VVP years NNS of IN coverage NN 1981 CD , , 1983 CD , , 1985 CD , , 1987 CD , , and CC 1989 CD only JJ and CC likely JJ termination NN of IN publication NN . SENT Gomez NP Mejia NP , , Luis NP R NP . SENT 1992 CD Structure NN and CC Process NN of IN Diversification NN , , Compensation NN Strategy NN , , and CC Firm NN Performance NN . SENT Strategic NP Management NP Journal NP . SENT 13 CD 5 CD . SENT 381 CD 397 CD . SENT A DT study NN tests VVZ 6 CD hypotheses NNS on IN the DT extent NN to TO which WDT a DT match NN between IN compensation NN and CC diversification NN strategies NNS affects VVZ the DT performance NN of IN a DT firm NN . SENT The DT sample NN consists VVZ of IN 867 CD firms NNS used VVN in IN a DT larger JJR study NN on IN chief JJ executive JJ compensation NN , , with IN 243 CD usable JJ questionnaires NNS returned VVD . SENT Both DT archival JJ and CC survey NN data NNS are VBP used VVN . SENT The DT results NNS generally RB support VVP the DT notion NN that IN firm NN performance NN is VBZ a DT positive JJ function NN of IN the DT degree NN to TO which WDT compensation NN strategies NNS reinforce VV or CC match VV corporate JJ strategies NNS . SENT An DT algorithmic JJ compensation NN pattern NN tends VVZ to TO make VV a DT greater JJR contribution NN to TO firm NN performance NN among IN dominant JJ and CC related JJ product NN firms NNS and CC companies NNS that WDT grow VVP internally RB . SENT An DT experiential JJ compensation NN pattern NN tends VVZ to TO make VV a DT greater JJR contribution NN to TO firm NN performance NN among IN single JJ product NN firms NNS and CC corporations NNS whose WP$ diversification NN process NN is VBZ evolutionary JJ in IN nature NN . SENT The DT proportion NN of IN explained VVN variance NN in IN firm NN performance NN attributed VVD to TO compensation NN diversification NN strategy NN fit NN is VBZ modest JJ but CC not RB trivial JJ . SENT Hoskisson NP , , Robert NP O NP . SENT Johnson NP , , Richard NP A NP . SENT 1992 CD Corporate JJ Restructuring NN and CC Strategic NP Change NP . SENT The DT Effect NN on IN Diversification NN Strategy NP and CC R NP D NP Intensitu NP . SENT Strategic NP Management NP Journal NP , , 13 CD 8 CD . SENT 625 CD 634 CD . SENT In IN the DT 1980 CD s PP , , a DT number NN of IN large JJ firms NNS restructured VVD their PP$ diversified JJ business NN through IN divestitures NNS . SENT It PP is VBZ hypothesized VVN that IN restructuring NN activity NN focused VVN on IN firms NNS at IN intermediate JJ levels NNS of IN diversification NN that WDT have VHP a DT mixture NN of IN related JJ and CC unrelated JJ business NN units NNS . SENT The DT results NNS confirm VVP this DT hypothesis NN , , which WDT explains VVZ that DT such JJ mixed JJ corporate JJ strategies NNS create VVP organizational JJ and CC control NN inefficiencies NNS in IN managing VVG both DT related JJ and CC unrelated JJ types NNS of IN business NN units NNS . SENT Restructured VVN firms NNS are VBP also RB found VVN to TO move VV toward IN 2 CD types NNS of IN different JJ internal JJ capital NN markets NNS related JJ and CC unrelated JJ . SENT Most JJS restructuring NN firms NNS moved VVN toward IN lower JJR levels NNS of IN diversification NN , , although IN some DT moved VVN toward IN higher JJR levels NNS of IN diversification NN . SENT The DT results NNS also RB show VVP that IN restructuring NN firms NNS that WDT changed VVD their PP$ corporate JJ strategy NN by IN reducing VVG diversified JJ scope NN increased VVD their PP$ research NN and CC development NN R NP D NP intensity NN . SENT Firms NNS that IN resturctured NN and CC increased VVD their PP$ diversified JJ scope NN decreased VVD their PP$ R NP D NP intensity NN . SENT This DT result NN suggests VVZ a DT partial JJ substitution NN between IN diversification NN and CC R NP D NP activity NN . SENT Judge NP , , William NP Q NP . SENT , , Jr NP . SENT Zeithaml NP , , Carl NP P NN . SENT 1992 CD Institutional JJ and CC Strategic JJ Choice NN Perspectives NNS on IN Board NP Involvement NN in IN the DT Strategic NP Decision NN Process NN . SENT Academy NP of IN Management NP Journal NP , , 35 CD 4 CD . SENT 766 CD 794 CD . SENT The DT level NN of IN a DT board NN of IN directors NNS involvement NN in IN strategic JJ decisions NNS can MD be VB viewed VVN as IN an DT institutional JJ response NN or CC as IN a DT strategic JJ adaptation NN to TO external JJ pressures NNS for IN greater JJR board NN involvement NN . SENT The DT antecedents NNS and CC effects NNS of IN board NN involvement NN were VBD examined VVN from IN both CC the DT institutional JJ and CC strategic JJ choice NN perspectives NNS . SENT Data NNS obtained VVN from IN personal JJ interviews NNS with IN 114 CD board NN members NNS and CC archival JJ records NNS indicated VVD that DT board NN size NN and CC levels NNS of IN diversification NN and CC insider NN representation NN were VBD negatively RB related VVN to TO board NN involvement NN , , and CC organizational JJ age NN was VBD positively RB related VVN to TO it PP . SENT Furthermore RB , , board NN involvement NN was VBD found VVN to TO be VB positively RB related VVN to TO financial JJ performance NN after IN controlling VVG for IN industry NN and CC size NN effects NNS . SENT Overall RB , , the DT results NNS suggest VVP that IN both DT theoretical JJ perspectives NNS are VBP necessary JJ for IN a DT comprehensive JJ description NN of IN the DT strategic JJ role NN of IN boards NNS . SENT Lundquist NP , , Jerrold NP T NN . SENT 1992 CD Shrinking VVG Fast NP and CC Smart NP in IN the DT Defense NP Industry NP . SENT Harvard NP Business NP Review NP , , 70 CD 6 CD . SENT 74 CD 85 CD . SENT By IN the DT late JJ 1990 CD s PP , , US NP defense NN spending NN will MD drop VV 80 CD billion CD from IN its PP$ present JJ level NN due JJ to TO cuts NNS that WDT will MD be VB deeper JJR and CC longer JJR than IN any DT in IN US NP history NN . SENT As IN the DT Cold NP War NP ends VVZ and CC demand NN from IN the DT Department NP of IN efense NN dwindles VVZ , , the DT defense NN industry NN faces VVZ its PP$ most RBS profound JJ shift NN since IN the DT end NN of IN World NP War NP II NP . SENT Boom NN bust NN patterns NNS have VHP always RB driven VVN the DT industry NN . SENT But CC in IN 1992 CD , , in IN addition NN to TO a DT cyclical JJ drop NN in IN procurement NN , , defense NN contractors NNS are VBP reeling VVG from IN reforms NNS of IN the DT past JJ decade NN that WDT decreased VVD their PP$ profits NNS and CC increased VVD the DT risk NN of IN bidding NN on IN new JJ programs NNS . SENT Although IN the DT conventional JJ strategies NNS of IN commercialization NN , , globalization NN , , and CC diversification NN helped VVD contractors NNS survive VV the DT downturns NNS after IN World NP War NP II NP , , Korea NP , , and CC Vietnam NP , , defense NN contractors NNS can MD no RB longer RB seek VV to TO grow VV faster RBR than IN their PP$ industry NN . SENT They PP must MD shrink VV fast JJ and CC smart JJ , , investing VVG in IN businesses NNS where WRB the DT company NN can MD be VB preeminent JJ , , and CC shutting VVG down RP or CC selling VVG off RP everything NN else RB . SENT Nayyar NP , , Praveen NP R NP . SENT 1992 CD On IN the DT Measurement NN of IN Corporate JJ Diversification NN Strategy NN . SENT Evidence NN from IN Large JJ U NP . SENT S NP . SENT Service NP Firms NPS . SENT Strategic NP Management NP Journal NP , , 13 CD 3 CD . SENT 219 CD 235 CD . SENT Actual JJ , , not RB potential JJ , , relatedness NN determines VVZ the DT results NNS of IN diversification NN strategies NNS . SENT An DT external JJ examination NN of IN a DT firm's JJ businesses NNS , , products NNS , , markets NNS , , and CC technologies NNS allows VVZ the DT assessment NN of IN potential JJ relatedness NN among IN its PP$ various JJ businesses NNS . SENT Potential JJ relatedness NN is VBZ often RB not RB realized VVN , , however RB . SENT In IN addition NN , , relatedness NN may MD be VB externally RB invisible JJ . SENT Thus RB , , actual JJ relatedness NN may MD diverge VV from IN externally RB measured VVN potential JJ relatedness NN . SENT Evidence NN is VBZ provided VVN which WDT suggests VVZ that IN measures NNS of IN corporate JJ diversification NN strategy NN based VVN on IN internal JJ data NNS differ VVP significantly RB from IN those DT based VVN on IN externally RB avaliable JJ data NNS . SENT Difficulties NNS in IN implementing VVG related JJ diversification NN strategies NNS may MD force VV firms NNS to TO forego VV the DT benefits NNS of IN relatedness NN among IN their PP$ businesses NNS . SENT Consequently RB , , externally RB observed VVD similarities NNS in IN products NNS , , markets NNS , , or CC technologies NNS may MD not RB reveal VV actual JJ relatedness NN among IN businesses NNS in IN diversified JJ firms NNS . SENT Russo NP , , Michael NP V NN . SENT 1992 CD Power NP Plays NP . SENT Regulation NN , , Diversification NN , , and CC Backward RB Integration NP in IN the DT Electric NP Utility NP Industry NP . SENT Strategic NP Management NP Journal NP , , 13 CD 1 CD . SENT 13 CD 27 CD . SENT The DT influence NN of IN regulatory JJ oversight NN on IN strategic JJ management NN is VBZ examined VVN . SENT Predictions NNS of IN the DT extent NN to TO which WDT a DT firm NN diversifies VVZ and CC integrates VVZ upstream RB based VVN on IN transaction NN cost NN economics NNS are VBP developed VVN and CC then RB tested VVN among IN 49 CD US NP electric JJ utilities NNS from IN 1974 CD through IN 1986 CD , , a DT period NN that IN witnessed VVN increasingly RB hostile JJ regulatory JJ relations NNS . SENT The DT results NNS confirm VVP the DT influence NN of IN regulation NN in IN both DT diversification NN and CC backward RB integration NN , , supporting VVG the DT transaction NN cost NN view NN of IN these DT phenomena NNS . SENT The DT threat NN associated VVN with IN increases NNS in IN regulatory JJ monitoring NN led VVN to TO decreases NNS in IN integration NN . SENT The DT response NN of IN firms NNS , , then RB , , to TO greater JJR increases NNS in IN monitoring NN was VBD to TO remove VV their PP$ presence NN in IN the DT threatened VVN domain NN . SENT Thus RB , , externalization NN takes VVZ place VV when WRB transaction NN costs NNS are VBP higher JJR under IN unified JJ governance NN . SENT Wiersema NP , , Margarethe NP F NP . SENT Bantel NP , , Karen NP A NP . SENT 1992 CD Top JJ Management NP Team NP Demography NN and CC Corporate JJ Strategic NP Change NP . SENT Academy NP of IN Management NP Journal NP , , 35 CD 1 CD . SENT 91 CD 121 CD . SENT The DT relationship NN between IN the DT demography NN of IN top JJ management NN teams NNS and CC corporate JJ strategic JJ change NN , , measured VVN as IN absolute JJ change NN in IN diversification NN level NN , , was VBD examined VVN via IN a DT sample NN of IN Fortune NP 500 CD companies NNS . SENT Controlling VVG for IN prior JJ firm NN performance NN , , organizational JJ size NN , , top JJ team NN size NN , , and CC industry NN structure NN , , it PP was VBD found VVN that IN the DT firms NNS most RBS likely JJ to TO undergo VV changes NNS in IN corporate JJ strategy NN had VHD top JJ management NN teams NNS characterized VVN by IN lower JJR average JJ age NN , , shorter JJR organizational JJ tenure NN , , higher JJR team NN tenure NN , , higher JJR educational JJ level NN , , higher JJR educational JJ specialization NN heterogeneity NN , , and CC higher JJR academic JJ training NN in IN the DT sciences NNS than IN other JJ teams NNS . SENT The DT results NNS suggested VVN that IN top JJ managers NNS cognitive JJ perspectives NNS , , as RB reflected VVD in IN a DT team's JJ demographic JJ characteristics NNS , , are VBP linked VVN to TO the DT team's JJ propensity NN to TO change VV corporate JJ strategy NN . SENT Rumelt NP , , Richard NP P NN . SENT 1991 CD How WRB Much RB Does VVZ Industry NP Matter NP . SENT Strategic NP Management NP Journal NP , , 12 CD 3 CD . SENT 167 CD 185 CD . SENT Because IN competition NN acts NNS to TO direct JJ resources NNS toward IN uses NNS offering VVG the DT highest JJS returns NNS , , persistently RB unequal JJ returns NNS mark VVP the DT presence NN of IN either DT natural JJ or CC contrived JJ impediments NNS to TO resource NN flows NNS . SENT The DT implicit JJ assumption NN has VHZ been VBN that IN the DT most RBS important JJ market NN imperfections NNS rise VVP out RP of IN the DT collective JJ circumstances NNS and CC behavior NN of IN firms NNS . SENT However RB , , the DT field NN of IN business NN strategy NN holds VVZ that IN the DT most RBS important JJ impediments NNS are VBP not RB the DT common JJ property NN of IN collections NNS of IN firms NNS , , but CC arise VV instead RB from IN the DT unique JJ endowments NNS and CC actions NNS of IN individual JJ corporations NNS or CC business NN units NNS . SENT A DT study NN partitions VVZ the DT total JJ variance NN in IN rate NN of IN return NN among IN Federal NP Trade NP Commission NP FTC NP Line NP of IN Business NP reporting VVG units NNS into IN industry NN factors NNS , , time NN factors NNS , , factors NNS associated VVN with IN corporate JJ parent NN , , and CC business NN specific JJ factors NNS . SENT The DT data NNS reveal VVP negligible JJ corporate JJ effects NNS , , small JJ stable JJ industry NN effects NNS , , and CC very RB large JJ stable JJ business NN unit NN effects NNS . SENT These DT results NNS imply VVP that IN the DT most RBS important JJ sources NNS of IN economic JJ rents NNS are VBP business NN specific JJ . SENT industry NN membership NN and CC corporate JJ parentage NN are VBP less RBR important JJ . SENT Chatterjee NP , , Sayan NP . SENT Wernerfelt NP , , Birger NP , , 1991 CD The DT Link NN Between IN Resources NPS and CC Type NN of IN Diversification NN . SENT Theory NN and CC Evidence NN . SENT Strategic NP Management NP Journal NP , , 12 CD 1 CD . SENT 33 CD 48 CD . SENT The DT research NN question NN that WDT may MD have VH attracted VVN the DT most JJS attention NN in IN strategic JJ management NN discipline NN is VBZ the DT possible JJ association NN between IN firm NN diversification NN and CC performance NN . SENT A DT study NN investigated VVD the DT idea NN that IN firms NNS diversify VV in IN part NN to TO utilize VV productive JJ resources NNS that WDT are VBP surplus JJ to TO current JJ operations NNS . SENT The DT data NNS were VBD obtained VVN from IN 2 CD primary JJ sources NNS . SENT the DT Trinet NP Establishment NN database NN and CC the DT COMPUSTAT NP Industrial NP Annual JJ database NN . SENT The DT results NNS suggest VVP that IN excess JJ physical JJ resources NNS , , most JJS knowledge NN based VVN resources NNS , , and CC external JJ financial JJ resources NNS are VBP associated VVN with IN more JJR related JJ diversification NN , , while IN internal JJ financial JJ resources NNS are VBP associated VVN with IN more JJR unrelated JJ diversification NN . SENT The DT findings NNS showed VVD a DT strong JJ association NN between IN intangible JJ assets NNS and CC more JJR related JJ diversification NN . SENT However RB , , there EX was VBD no DT association NN between IN ability NN to TO raise VV equity NN capital NN and CC the DT type NN of IN entered VVN market NN . SENT Higher JJR performing NN firms NNS were VBD found VVN to TO support VV the DT model NN better RBR than IN lower JJR performing NN firms NNS . SENT Datta NP , , Deepak NP K NP . SENT Rajagopalan NP , , Nandini NP . SENT Rasheed NP , , Abdul NP M NP . SENT 1991 CD Diversification NN and CC Performance NN . SENT Critical JJ Review NP and CC Future JJ Directions NNS . SENT Journal NP of IN Management NP Studies NPS , , 28 CD 5 CD . SENT 529 CD 558 CD . SENT While IN diversification NN remains VVZ a DT very RB important JJ strategic JJ option NN , , it PP is VBZ not RB a DT panacea NN for IN lagging VVG corporate JJ performance NN . SENT There EX are VBP considerable JJ risks NNS associated VVN with IN diversification NN . SENT consequently RB , , it PP is VBZ an DT option NN that WDT should MD be VB considered VVN ony NN after IN a DT careful JJ examination NN of IN all DT relevant JJ factors NNS . SENT A DT better JJR understanding NN of IN such JJ factors NNS and CC the DT complexities NNS surrounding VVG diversification NN and CC its PP$ relationship NN to TO performance NN is VBZ critical JJ to TO maximize VV the DT probabilities NNS of IN success NN . SENT An DT integrative JJ theoretical JJ framework NN is VBZ developed VVN and CC used VVN to TO review VV the DT existing JJ empirical JJ research NN on IN the DT diversification NN performance NN relationship NN along IN the DT 3 CD research NN streams NNS that WDT have VHP studied VVN this DT relationship NN . SENT The DT analysis NN highlights VVZ the DT considerable JJ diversity NN in IN findings NNS across IN studies NNS in IN each DT stream NN and CC identifies VVZ certain JJ theoretical JJ and CC methodological JJ issues NNS that WDT might MD explain VV this DT diversity NN . SENT Also RB discussed VVN is VBZ a DT contingency NN based VVN perspective NN . SENT Hill NP , , Charles NP W NP . SENT L NP . SENT Hansen NP , , Gary NP S NP . SENT 1991 CD A NP Longitudinal JJ Study NN of IN the DT Cause NP and CC Consequences NNS of IN Changes NP in IN Diversification NN in IN the DT U NP . SENT S NP . SENT Pharmaceutical JJ . SENT Strategic NP Management NP Journal NP , , 12 CD 3 CD . SENT 187 CD 199 CD . SENT While IN the DT relationship NN between IN diversification NN strategy NN and CC performance NN has VHZ been VBN the DT focus NN of IN extensive JJ research NN in IN the DT strategic JJ management NN literature NN , , results NNS remain VVP inconclusive JJ . SENT A DT study NN examined VVD the DT causes NNS and CC consequences NNS of IN changes NNS in IN diversification NN by IN firms NNS based VVN in IN the DT US NP pharmaceutical JJ industry NN during IN the DT period NN 1977 CD 1986 CD . SENT The DT basic JJ proposition NN was VBD that IN the DT high JJ risks NNS of IN doing VVG business NN in IN the DT pharmaceutical JJ industry NN resulted VVN in IN risk NN averse JJ senior JJ managers NNS favoring VVG diversification NN over IN strategic JJ concentration NN during IN this DT time NN period NN . SENT A DT pooled JJ time NN series NN methodology NN was VBD used VVN to TO analyze VV the DT data NNS . SENT The DT results NNS supported VVD the DT proposition's JJ line NN of IN reasoning NN . SENT Change NN in IN diversity NN was VBD found VVN to TO be VB a DT negative JJ function NN of IN research NN and CC development NN intensity NN , , advertising NN intensity NN , , market NN to TO book NN value NN , , management NN holdings NNS , , and CC opening VVG diversification NN and CC a DT positive JJ function NN of IN current JJ liquidity NN , , institutional JJ holdings NNS , , and CC firm NN risk NN . SENT Hoskisson NP , , Robert NP E NP . SENT Harrison NP , , Jeffrey NP S NP . SENT Dubofsky NP , , David NP A NP . SENT 1991 CD Capital NP Market NP Evaluation NN of IN M NP Form NP Implementation NN and CC Diversification NN Strategy NN . SENT Strategic NP Management NP Journal NP , , 12 CD 4 CD . SENT 271 CD 279 CD . SENT Firm NN announcements NNS of IN adoption NN of IN the DT multidivisional JJ structure NN fare NN assessed VVD using VVG stock NN market NN data NNS and CC event NN methodology NN . SENT The DT sample NN is VBZ composed VVN of IN 22 CD firms NNS identified VVN as IN having VHG undergone VVN the DT transition NN to TO the DT M NP form NN from IN one CD of IN a DT number NN of IN sources NNS . SENT The DT results NNS suggest VVP that IN , , in IN general NN , , the DT market NN reacts VVZ positively RB to TO M NP form NN reorganization NN announcements NNS . SENT However RB , , caution NN must MD be VB used VVN in IN interpreting VVG these DT results NNS . SENT One CD issue NN is VBZ whether IN firms NNS having VHG different JJ diversification NN strategies NNS are VBP affected VVN equally RB by IN M NP form NN implementation NN . SENT To TO test VV this DT notion NN , , the DT event NN study NN data NNS are VBP broken VVN into IN 2 CD portfolios NNS , , one CD consisting VVG of IN vertically RB integrated JJ and CC unrelated JJ firms NNS and CC the DT other JJ consisting VVG of IN related JJ diversified JJ firms NNS . SENT The DT results NNS seem VVP to TO support VV the DT idea NN that WDT , , in IN the DT immediate JJ term NN , , structural JJ consequences NNS are VBP important JJ for IN the DT vertically RB integrated JJ and CC unrelated JJ firm NN portfolio NN . SENT The DT event NN period NN cumulative JJ abnormal JJ return NN is VBZ not RB significantly RB different JJ from IN zero CD for IN firms NNS diversified VVN along IN related JJ lines NNS . SENT Lubatkin NP , , Michael NP . SENT Chatterjee NP , , Sayan NP 1991 CD The DT Strategy NN Shareholder NN Value NP Relationship NN . SENT Testing VVG Temporal JJ Stability NP Across IN Market NP Cycles NNS . SENT Strategic NP Management NP Journal NP , , 12 CD 4 CD . SENT 251 CD 270 CD . SENT Multivariate JJ analyses NNS are VBP used VVN to TO examine VV the DT stability NN of IN the DT relationship NN between IN diversification NN and CC shareholder NN value NN across IN 9 CD contiguous JJ time NN periods NNS , , organized VVN so RB as IN to TO highlight VV 3 CD distinct JJ market NN cycles NNS . SENT The DT use NN of IN multiple JJ periods NNS facilitated VVD a DT rigorous JJ examination NN of IN the DT independent JJ and CC moderating VVG effects NNS of IN cycle NN , , while IN controlling VVG for IN a DT concurrent JJ economic JJ phenomenon NN , , trend NN . SENT Shareholder NN value NN is VBZ measured VVN as IN a DT 2 CD dimensional JJ construct NN systematic JJ risk NN and CC excess JJ return NN . SENT The DT research NN implies VVZ that IN it PP may MD not RB be VB meaningful JJ to TO investigate VV the DT association NN of IN strategy NN and CC performance NN without IN explicitly RB considering VVG the DT corresponding JJ economic JJ environment NN . SENT It PP is VBZ suggested VVN that IN firms NNS that WDT diversify VV by IN emphasizing VVG common JJ core NN technologies NNS show VVP on IN average JJ lower JJR levels NNS of IN systematic JJ risk NN , , regardless RB of IN market NN conditions NNS . SENT Cycle NN does VVZ appear VV to TO moderate VV the DT ability NN of IN the DT 2 CD strategy NN types NNS to TO generate VV excess JJ returns NNS . SENT The DT systematic JJ risk NN findings NNS suggest VVP that IN corporations NNS can MD achieve VV a DT reduction NN in IN risk NN that IN stockholders NNS cannot NN achieve VVP on IN their PP$ own JJ . SENT Russo NP , , Michael NP V NN . SENT 1991 CD The NP Multidivisional NP Structure NN as IN an DT Enabling VVG Device NN . SENT A DT Longitudinal JJ Study NN of IN Discretionary JJ Cash NN as IN a DT Strategic NP Resource NP . SENT Academy NP of IN Management NP Journal NP . SENT 34 CD 3 CD . SENT 718 CD 733 CD . SENT The DT role NN of IN discretionary JJ cash NN in IN the DT adoption NN of IN a DT multidivisional JJ , , or CC M NP form NN , , organizational JJ structure NN was VBD examined VVN . SENT It PP was VBD argued VVN that IN the DT adoption NN of IN the DT M NP form NN structure NN is VBZ linked VVN to TO increases NNS in IN a DT firm's JJ levels NNS of IN discretionary JJ cash NN . SENT This DT proposition NN was VBD developed VVN by IN assessing VVG the DT advantages NNS of IN M NP form NN as IN an DT instrument NN for IN directing VVG cash NN , , a DT fully RB fungible JJ corporate JJ resource NN , , to TO alternative JJ uses NNS . SENT Event NN history NN analysis NN was VBD used VVN to TO model VV the DT diffusion NN of IN the DT M NP form NN through IN a DT group NN of IN privately RB owned VVN US PP electric JJ utilities NNS . SENT The DT results NNS showed VVD that IN the DT hypothesized VVN relationship NN holds VVZ , , even RB when WRB the DT effects NNS of IN firm NN size NN , , levels NNS of IN diversification NN and CC vertical JJ integration NN , , and CC possible JJ imitation NN effects NNS are VBP controlled VVN . SENT Schleifer NP , , Andrei NP . SENT Vishny NP , , Robert NP W NP . SENT 1991 CD Takeovers NNS in IN the DT 60 CD s PP and CC the DT 80 CD s PP . SENT Evidence NN and CC Implications NNS . SENT Strategic NP Management NP Journal NP , , 12 CD Winter NP . SENT 51 CD 59 CD . SENT The DT US NP economy NN has VHZ experienced VVN 2 CD large JJ takeover NN waves NNS in IN the DT postwar JJ period NN . SENT one CD in IN the DT 1960 CD s PP and CC one CD in IN the DT 1980 CD s PP . SENT A DT typical JJ 1960 CD s PP transaction NN was VBD a DT friendly JJ acquisition NN , , usually RB for IN stock NN , , by IN a DT large JJ corporation NN of IN a DT smaller JJR public NN or CC private JJ firms NNS outside IN the DT acquirer's JJ main JJ line NN of IN business NN . SENT Takeovers NNS in IN the DT 1980 CD s PP were VBD very RB different JJ in IN that DT . SENT 1 LS . SENT the DT size NN of IN the DT average JJ target NN has VHZ increased VVN enormously RB from IN the DT modest JJ level NN of IN the DT 1960 CD s PP , , 2 CD . SENT many JJ transactions NNS , , especially RB the DT large JJ ones NNS , , were VBD hostile JJ , , and CC 3 CD . SENT the DT medium NN of IN exchange NN in IN takeovers NNS became VVD cash NN rather RB than IN stock NN . SENT The DT takeover NN wave NN of IN the DT 1980 CD s PP could MD be VB interpreted VVN as IN a DT reversal NN of IN the DT unrelated JJ diversification NN of IN the DT 1960 CD s PP . SENT This DT experience NN indicates VVZ that IN . SENT 1 LS . SENT takeovers NNS can MD be VB as RB much JJ a DT manifestation NN of IN agency NN problems NNS as IN a DT route NN to TO correcting VVG them PP , , 2 CD . SENT using VVG the DT stock NN market NN as IN a DT guage NN of IN profitability NN of IN corporate JJ actions NNS can MD lead VV one PP seriously RB astray RB , , and CC 3 CD . SENT aggressive JJ government NN action NN , , in IN this DT case NN antitrust JJ policy NN , , can MD have VH large JJ unintended JJ effects NNS . SENT Chatterjee NP , , Sayan NP . SENT Lubatkin NP , , Michael NP 1990 CD Corporate NP Mergers NP , , Stockholder NN Diversification NN , , and CC Changes NP in IN Systematic JJ Risk NN . SENT Strategic NP Management NP Journal NP , , 11 CD 4 CD . SENT 255 CD 268 CD . SENT Strategic JJ management NN literature NN indicates VVZ that IN a DT relationship NN exists VVZ between IN systematic JJ risk NN and CC the DT relatedness NN of IN merging VVG firms NNS . SENT A DT recent JJ study NN demonstrates VVZ empirically RB how WRB the DT underlying JJ paradigms NNS of IN strategic JJ management NN in IN the DT context NN of IN corporate JJ mergers NNS can MD make VV an DT important JJ contribution NN toward IN building VVG a DT unified JJ theory NN of IN systematic JJ risk NN . SENT A DT conceptual JJ framework NN to TO predict VV changes NNS in IN systematic JJ risk NN is VBZ developed JJ that WDT incorporates VVZ arguments NNS from IN the DT strategic JJ management NN literature NN and CC a DT relaxed VVN set NN of IN capital NN asset NN pricing NN assumptions NNS . SENT A DT sample NN of IN 120 CD large JJ mergers NNS was VBD tested VVN , , controlling VVG for IN the DT systematic JJ risk NN of IN the DT target NN firm NN , , correcting VVG for IN possible JJ problems NNS of IN heteroskedasticity NN , , and CC estimating VVG shifts NNS in IN risk NN over IN daily JJ as RB well RB as IN monthly JJ time NN horizons NNS . SENT The DT results NNS highlight VV a DT performance NN distinction NN between IN corporate JJ diversification NN and CC stockholder NN diversification NN in IN cases NNS of IN related JJ and CC unrelated JJ mergers NNS . SENT Dess NP , , Gregory NP G NP . SENT Ireland NP , , R NP . SENT Duane NP . SENT Hitt NP , , Michael NP A NP . SENT 1990 CD Industry NN Effects NNS and CC Strategic NP Management NP Research NP . SENT Journal NP of IN Management NP , , 16 CD 1 CD . SENT 7 CD 27 CD . SENT An DT examination NN is VBZ made VVN of IN the DT issue NN of IN industry NN effects NNS in IN the DT conduct NN of IN strategic JJ management NN research NN . SENT Forty NN of IN the DT most RBS frequently RB cited VVN empirical JJ strategy NN studies NNS published VVN between IN 1980 CD and CC 1988 CD are VBP identified VVN and CC analyzed VVN . SENT Multiple JJ industry NN controls NNS were VBD used VVN in IN 11 CD of IN 40 CD studies NNS . SENT The DT largest JJS percentage NN used VVD some DT form NN of IN quasi NP industry NN controls NNS . SENT No DT explicit JJ controls NNS for IN industry NN effects NNS were VBD used VVN in IN 1 CD 4 CD of IN the DT research NN , , suggesting VVG that DT industry NN context NN was VBD not RB treated VVN adequately RB in IN some DT studies NNS . SENT Others NNS used VVD surrogate JJ environmental JJ measures NNS or CC focused VVN on IN a DT single JJ industry NN . SENT However RB , , few JJ of IN those DT researchers NNS provided VVD the DT types NNS of IN detailed JJ descriptions NNS of IN the DT industry NN environments NNS that WDT could MD be VB useful JJ for IN comparisons NNS by IN future JJ researchers NNS . SENT Methods NNS that WDT can MD be VB used VVN to TO control VV for IN potential JJ industry NN effects NNS include VVP . SENT 1 LS . SENT single JJ industry NN studies NNS , , 2 CD . SENT multiple JJ industry NN control NN variables NNS and CC environmental JJ dimensions NNS , , and CC 3 CD . SENT stratified VVN samples NNS by IN industry NN . SENT Fombrun NP , , Charles NP J NP . SENT Ginsberg NP , , Ari NP 1990 CD Shifting VVG Gears NNS . SENT Enabling VVG Change NP in IN Corporate JJ Aggressiveness NN . SENT Strategic NP Management NP Journal NP , , 11 CD 4 CD . SENT 297 CD 308 CD . SENT The DT corporate JJ strategies NNS of IN multibusiness NN firms NNS are VBP interpreted VVN as IN patterns NNS in IN their PP$ aggregate JJ deployment NN of IN resources NNS to TO functional JJ uses NNS across IN businesses NNS . SENT By IN integrating VVG business NN and CC corporate JJ levels NNS in IN the DT study NN of IN strategy NN making NN , , such PDT a DT perspective NN facilitates VVZ evaluating VVG aggressiveness NN in IN corporate JJ posture NN as IN a DT concept NN distinct JJ from IN , , but CC complementary JJ to TO , , competitive JJ strategy NN and CC diversification NN . SENT It PP is VBZ argued VVN that IN changes NNS in IN aggressiveness NN result NN from IN the DT interplay NN of IN 2 CD sets NNS of IN forces NNS . SENT 1 LS . SENT inhibitors NNS that WDT create VVP inertia NN , , and CC 2 CD . SENT inductors NNS that WDT stimulate VV redeployments NNS . SENT Specific JJ hypotheses NNS are VBP tested VVN using VVG data NNS taken VVN from IN a DT random JJ sample NN of IN 352 CD companies NNS in IN 10 CD economic JJ sectors NNS between IN 1977 CD and CC 1984 CD . SENT The DT results NNS support VVP the DT view NN that IN prior JJ performance NN and CC sector NN volatility NN have VHP a DT curvilinear JJ impact NN on IN the DT propensity NN of IN firms NNS to TO change VV their PP$ corporate JJ aggressiveness NN . SENT Change NN in IN corporate JJ posture NN is VBZ inhibited VVD significantly RB by IN size NN and CC prior JJ resource NN deployments NNS . SENT However RB , , the DT inductive JJ forces NNS of IN prior JJ performance NN and CC volatility NN serve VVP to TO stimulate VV change NN . SENT Fryxell NP , , Gerald NP E NP . SENT Barton NP , , Sidney NP L NP . SENT 1990 CD Temporal JJ and CC Contextual JJ Change NP in IN the DT Measurement NN Structure NN of IN Financial NP Performance NP . SENT Implications NNS for IN Strategy NP Research NP . SENT Journal NP of IN Management NP , , 16 CD 3 CD . SENT 553 CD 569 CD . SENT The DT study NN of IN the DT influence NN of IN strategy NN on IN firm NN performance NN is VBZ central JJ to TO strategic JJ management NN research NN . SENT An DT empirical JJ analysis NN is VBZ presented VVN of IN the DT extent NN to TO which WDT the DT measurement NN structure NN of IN accounting NN and CC market NN based VVN indicators NNS converges VVZ on IN a DT financial JJ performance NN construct VV by IN time NN period NN and CC by IN diversification NN strategy NN . SENT In IN a DT longitudinal JJ , , single JJ factor NN model NN of IN financial JJ performance NN , , it PP is VBZ found VVN that IN the DT relationship NN of IN these DT 2 CD types NNS of IN financial JJ performance NN measures VVZ changes NNS in IN periods NNS of IN stability NN versus CC instability NN and CC for IN related JJ diversifiers NNS versus CC unrelated JJ diversifiers NNS . SENT It PP is VBZ suggested VVN that IN meta NP analytic JJ studies NNS in IN strategy NN research NN may MD be VB able JJ to TO incorporate VV situational JJ factors NNS to TO obtain VV more JJR valid JJ findings NNS . SENT A DT latent JJ variable JJ approach NN to TO financial JJ performance NN has VHZ the DT potential NN of IN making VVG direct JJ comparisons NNS of IN underlying JJ constructs NNS possible JJ . SENT Ginsberg NP , , Ari NP 1990 CD Connecting VVG Diversification NN to TO Performance NP . SENT A DT Sociocognitive JJ Approach NN . SENT Academy NP of IN Management NP Review NP , , 15 CD 3 CD . SENT 514 CD 535 CD . SENT A DT sociocognitive JJ model NN of IN diversification NN is VBZ developed VVN that IN bases NNS the DT role NN of IN top JJ managers NNS belief NN systems NNS in IN the DT cognitive JJ and CC behavioral JJ attributes NNS of IN corporate JJ strategy NN . SENT In IN contrast NN to TO more JJR traditional JJ approaches NNS that WDT emphasize VVP the DT economies NNS generated VVN by IN diversity NN and CC relatedness NN , , this DT approach NN emphasizes VVZ the DT creativity NN and CC flexibility NN associated VVN with IN corporate JJ level NN decision NN making VVG processes NNS . SENT The DT sociocognitive JJ perspective NN of IN strategy NN proposed VVD makes VVZ 3 CD important JJ contributions NNS . SENT 1 LS . SENT It PP allows VVZ the DT examination NN of IN the DT ways NNS in IN which WDT managers NNS cognitive JJ structures NNS reflect VVP the DT systemic JJ properties NNS of IN strategic JJ position NN . SENT 2 LS . SENT It PP allows VVZ the DT examination NN of IN the DT ways NNS in IN which WDT shared VVD cognitive JJ structures NNS reflect VVP the DT behavioral JJ dynamics NNS of IN strategic JJ decision NN making VVG processes NNS . SENT 3 LS . SENT It PP allows VVZ the DT development NN of IN specific JJ predictions NNS and CC prescriptions NNS regarding VVG the DT influence NN of IN top JJ management NN teams NNS sociocognitive JJ capacities NNS on IN processes NNS of IN diversification NN and CC their PP$ economic JJ outcomes NNS . SENT Hitt NP , , Michael NP A NP . SENT Hoskisson NP , , Robert NP E NP . SENT Ireland NP , , R NP . SENT Duane NP 1990 NP Mergers NPS and CC Acquisitions NNS and CC Managerial JJ Commitment NN to TO Innovation NN in IN M NP Form NP Firms NPS . SENT Strategic NP Management NP Journal NP , , 11 CD Summer NP . SENT 29 CD 47 CD . SENT Acquisitive JJ growth NN has VHZ become VVN a DT highly RB popular JJ strategy NN in IN recent JJ years NNS , , and CC more JJR attention NN has VHZ been VBN focused VVN on IN its PP$ outcomes NNS . SENT A DT theory NN is VBZ presented VVN that DT suggests VVZ a DT trade NN off RP between IN growth NN by IN acquisition NN and CC managerial JJ commitment NN to TO innovation NN . SENT A DT model NN is VBZ developed JJ that WDT proposes VVZ that IN the DT acquisition NN process NN and CC the DT resulting VVG conditions NNS after IN it PP is VBZ consummated VVN affect VV managerial JJ commitment NN to TO innovation NN . SENT The DT extent NN to TO which WDT acquisitions NNS serve VVP as IN a DT substitute NN for IN innovation NN , , energy NN , , and CC attention NN required VVN during IN negotiations NNS , , increased VVD use NN of IN leverage NN , , increased VVN size NN , , and CC greater JJR diversification NN may MD have VH an DT effect NN on IN managers NNS time NN and CC risk NN orientations NNS . SENT Because IN of IN these DT effects NNS , , managers NNS may MD reduce VV their PP$ commitment NN to TO innovation NN . SENT Recent JJ research NN appears VVZ to TO support VV the DT proposed VVN model NN . SENT The DT results NNS of IN the DT studies NNS suggest VVP that IN firms NNS engaging VVG in IN acquisition NN activity NN may MD reduce VV their PP$ commitment NN to TO innovation NN as IN measured VVN by IN research NN and CC development NN intensity NN . SENT Hoskisson NP , , Robert NP E NP . SENT Hitt NP , , Michael NP A NP . SENT 1990 CD Antecedents NNS and CC Performance NN Outcomes NNS of IN Diversification NN . SENT A DT Review NP and CC Critique NN of IN Theoretical JJ Perspectives NNS . SENT Journal NP of IN Management NP , , 16 CD 2 CD . SENT 461 CD 509 CD . SENT The DT antecedents NNS of IN diversification NN are VBP . SENT 1 LS . SENT markets NNS , , 2 CD . SENT resources NNS , , 3 CD . SENT incentives NNS , , and CC 4 CD . SENT managerial JJ motives NNS . SENT There EX are VBP 3 CD theoretical JJ viewpoints NNS that WDT summarize VV diversification NN antecedents NNS and CC performance NN outcomes NNS . SENT The DT first JJ perspective NN examines VVZ diversification NN under IN the DT assumption NN of IN relative JJ market NN perfection NN where WRB firms NNS and CC products NNS are VBP homogeneous JJ within IN industries NNS . SENT The DT 2 CD nd NN perspective NN examines VVZ diversification NN where WRB both DT market NN and CC firm NN imperfections NNS are VBP assumed VVN to TO exist VV . SENT The DT 3 CD rd NN perspective NN assumes VVZ market NN and CC firm NN imperfections NNS and CC assumes VVZ imperfect JJ governance NN structures NNS such JJ that IN managerial JJ motives NNS for IN diversification NN are VBP influential JJ . SENT These DT perspectives NNS provide VVP different JJ explanations NNS of IN antecedent JJ resources NNS and CC incentives NNS that WDT encourage VVP or CC discourage VVP diversification NN . SENT Hoskisson NP , , Robert NP E NP . SENT Turk NP , , Thomas NP A NP . SENT 1990 CD Corporate JJ Restructuring NN . SENT Governance NN and CC Control NN Limits NNS of IN the DT Internal NP Capital NP Market NP . SENT Academy NP of IN Management NP Review NP , , 15 CD 3 CD . SENT 459 CD 477 CD . SENT Corporate JJ restructuring NN that WDT is VBZ initiated VVN by IN the DT threat NN of IN a DT takeover NN provides VVZ evidence NN that IN corporate JJ governance NN limits NNS of IN large JJ diversified JJ firms NNS may MD exist VV . SENT Poor JJ corporate JJ monitoring NN , , which WDT is VBZ caused VVN by IN atomistic JJ ownership NN patterns NNS and CC inadequate JJ board NN of IN director NN governance NN , , an DT emphasis NN on IN incentive NN compensation NN , , and CC free JJ cash NN flows NNS , , may MD lead VV to TO higher JJR levels NNS of IN diversification NN . SENT If IN diversification NN results NNS in IN loss NN of IN strategic JJ control NN and CC poor JJ performance NN , , the DT threat NN of IN a DT takeover NN is VBZ probably RB related VVN to TO the DT incidence NN of IN corporate JJ restructuring NN . SENT Corporate JJ restructuring NN , , in IN turn NN , , is VBZ likely JJ to TO . SENT 1 LS . SENT result NN in IN the DT correction NN of IN inadequate JJ governance NN patterns NNS , , 2 LS . SENT create VV a DT more RBR focused JJ diversification NN strategy NN , , 3 CD . SENT increase NN strategic JJ control NN , , 4 CD . SENT reduce VV the DT reliance NN on IN bureaucratic JJ control NN through IN reduced JJ corporate JJ staff NN , , 5 CD . SENT increase VV the DT performance NN of IN the DT firm NN , , and CC 6 CD . SENT increase NN shareholder NN wealth NN . SENT Keats NP , , Barbara NP W NP . SENT 1990 CD Diversification NN and CC Business NP Economic NP Performance NP . SENT Issues NNS of IN Measurement NN and CC Causality NN . SENT Journal NP of IN Management NP , , 16 CD 1 CD . SENT 61 CD 72 CD . SENT Past JJ research NN on IN the DT relationship NN between IN diversification NN and CC firm NN performance NN has VHZ been VBN plagued VVN by IN a DT number NN of IN problems NNS . SENT Three CD such JJ problems NNS are VBP addressed VVN . SENT Relationships NNS between IN diversification NN and CC multiple JJ performance NN dimensions NNS are VBP reframed VVN in IN the DT context NN of IN a DT time NN ordered VVD causal JJ model NN . SENT Firms NNS included VVD in IN the DT study NN are VBP Fortune NP 500 CD firms NNS taken VVN from IN Rumelt's NP 1978 CD strategy NN and CC structure NN databank NP . SENT Of IN 263 CD firms NNS listed VVN , , 110 RB meet VV all DT criteria NNS . SENT Firm NN classifications NNS are VBP grouped VVN in IN 4 CD broad JJ categories NNS single JJ , , dominant JJ , , related JJ , , and CC unrelated JJ business NN . SENT The DT results NNS suggest VVP that IN diversification NN and CC performance NN are VBP multidimensional JJ constructs NNS and CC that DT identification NN of IN appropriate JJ criteria NNS for IN performance NN assessment NN depends VVZ upon IN the DT strategy NN pursued VVD . SENT However RB , , the DT unrelated JJ business NN diversification NN category NN exhibits VVZ a DT strong JJ positive JJ relationship NN with IN subsequent JJ market NN based VVN performance NN , , suggesting VVG that DT investors NNS value VVP this DT strategy NN as IN well RB . SENT Thus RB , , criteria NNS used VVD to TO assess VV firm NN performance NN when WRB unrelated JJ diversified JJ firms NNS are VBP included VVN as IN subjects NNS of IN study NN ought MD to TO include VV market NN based VVN measures NNS . SENT Nayyar NP , , Praveen NP R NP . SENT 1990 CD Information NP Asymmetries NNS . SENT A DT Source NN of IN Competitive JJ Advantage NN for IN Diversified NP Service NP Firms NPS . SENT Strategic NP Management NP Journal NP , , 11 CD 7 CD . SENT 513 CD 519 CD . SENT Information NN asymmetries NNS are VBP generally RB considered VVN as IN leading VVG to TO costs NNS for IN both DT parties NNS in IN an DT exchange NN transaction NN . SENT However RB , , they PP can MD also RB be VB a DT source NN of IN competitive JJ advantage NN . SENT Potential JJ buyers NNS are VBP faced VVN with IN information NN asymmetries NNS in IN their PP$ evaluation NN of IN services NNS prior RB to TO purchase VV . SENT Since IN these DT asymmetries NNS impose VV costs NNS on IN buyers NNS , , there EX is VBZ an DT incentive NN to TO lower VV the DT costs NNS . SENT This DT incentive NN may MD be VB exploited VVN by IN service NN firms NNS that WDT diversify VV into IN other JJ services NNS that WDT meet VVP the DT needs NNS of IN their PP$ existing JJ customers NNS . SENT If IN reputation NN can MD be VB transferred VVN , , diversification NN into IN services NNS high JJ on IN experience NN or CC credence NN , , or CC both DT , , will MD reduce VV information NN acquisition NN costs NNS for IN potential JJ buyers NNS . SENT Diversification NN into IN services NNS high JJ on IN search NN qualities NNS will MD not RB reduce VV those DT costs NNS . SENT Service NN firms NNS will MD gain VV a DT competitive JJ advantage NN by IN serving VVG multiple JJ needs NNS of IN their PP$ clients NNS for IN services NNS high JJ on IN experience NN or CC credence NN or CC both DT qualities NNS but CC not RB for IN services NNS high JJ on IN search NN qualities NNS . SENT Nguyen NP , , The DT Hiep NP . SENT Seror NP , , Ann NP . SENT Devinney NP , , Timothy NP M NP . SENT 1990 CD Diversification NN Strategy NN and CC Performance NN in IN Canadian NP Manufacturing NP Firms NPS . SENT Strategic NP Management NP Journal NP , , 11 CD 5 CD . SENT 411 CD 418 CD . SENT In IN a DT study NN of IN the DT interrelationships NNS between IN firm NN diversification NN , , market NN power NN , , and CC performance NN , , Montgomery NP 1985 CD presented VVD empirical JJ evidence NN to TO support VV the DT hypotheses NNS that IN highly RB diversified JJ firms NNS will MD have VH lower JJR market NN shares NNS in IN their PP$ respective JJ markets NNS than IN less JJR diversified JJ firms NNS and CC that IN the DT strategy NN of IN diversification NN does VVZ not RB contribute VV to TO firm NN profitability NN . SENT These DT results NNS are VBP reexamined VVN using VVG a DT sample NN of IN Canadian JJ manufacturing NN firms NNS . SENT Multiple JJ regression NN analysis NN is VBZ used VVN to TO test VV the DT hypothesis NN that IN diversification NN in IN technologically RB related VVN activities NNS results NNS in IN economies NNS of IN scope NN and CC greater JJR firm NN performance NN . SENT The DT results NNS support VVP the DT hypothesis NN that IN degree NN of IN technologically RB related VVN diversification NN is VBZ positively RB associated VVN with IN firm NN performance NN . SENT The DT extent NN of IN technologically RB related VVN diversification NN , , including VVG all DT strategies NNS , , is VBZ positively RB related VVN to TO firm NN profitability NN , , contrary JJ to TO Montgomery's NP finding NN of IN no DT effect NN when WRB controls NNS are VBP introduced VVN for IN market NN share NN and CC primary JJ industry NN concentration NN . SENT Seth NP , , Anju NP 1990 CD Sources NNS of IN Value NP Creation NN in IN Acquisitions NNS . SENT An DT Empirical JJ Investigation NN . SENT Strategic NP Management NP Journal NP , , 11 CD 6 CD . SENT 431 CD 446 CD . SENT A DT conceptual JJ framework NN and CC an DT empirical JJ methodology NN to TO assess VV the DT relative JJ importance NN of IN different JJ sources NNS of IN value NN creation NN in IN acquisitions NNS are VBP described VVN . SENT The DT sample NN , , which WDT consisted VVD of IN 102 CD tender NN offers NNS for IN control NN that WDT took VVD place NN between IN 1962 CD and CC 1979 CD , , was VBD taken VVN from IN a DT comprehensive JJ listing NN of IN tender NN offers NNS obtained VVN from IN Bradley NP , , Desai NP , , and CC Kim NP 1988 CD . SENT The DT empirical JJ results NNS indicate VVP that DT value NN creation NN in IN related JJ acquisitions NNS is VBZ associated VVN with IN economic JJ efficiencies NNS , , hypothesized VVN to TO arise VV both CC from IN economies NNS of IN scale NN and CC scope NN and CC from IN operating VVG efficiencies NNS , , and CC with IN market NN power NN . SENT In IN unrelated JJ acquisitions NNS , , where WRB such JJ efficiencies NNS are VBP not RB expected VVN to TO be VB present JJ , , value NN creation NN occurs VVZ nevertheless RB and CC is VBZ linked VVN to TO the DT coinsurance NN effect NN . SENT It PP is VBZ shown VVN that IN financial JJ diversification NN effects NNS do VVP not RB play VV a DT part NN in IN value NN creation NN in IN either DT type NN of IN acquisition NN . SENT Simmonds NP , , Paul NP G NP . SENT 1990 RB The DT Combined JJ Diversification NN Breadth NN and CC Mode NP Dimensions NNS and CC the DT Performance NN of IN Large JJ Diversified NP Firms NNS . SENT Strategic NP Management NP Journal NP , , 11 CD 5 CD . SENT 399 CD 410 CD . SENT The DT impact NN of IN the DT symbiotic JJ relationship NN between IN diversification NN breadth NN and CC mode NN on IN firm NN performance NN was VBD investigated VVN . SENT A DT total NN of IN 73 CD Fortune NP 500 CD firms NNS were VBD classified VVN by IN diversification NN breadth NN related VVN unrelated JJ and CC mode NN internal JJ external JJ . SENT Their PP$ performance NN during IN the DT period NN 1975 CD 1984 CD was VBD analyzed VVN using VVG 4 CD financial JJ performance NN measures NNS . SENT 1 LS . SENT return NN on IN assets NNS , , 2 CD . SENT return NN on IN equity NN , , 3 CD . SENT return NN on IN invested VVN capital NN , , and CC 4 CD . SENT compound JJ sales NNS growth NN . SENT The DT 2 CD related JJ categories NNS related VVD internal JJ related VVN external JJ generally RB were VBD higher JJR performers NNS than IN were VBD the DT 2 CD unrelated JJ categories NNS unrelated JJ internal JJ unrelated JJ external JJ . SENT However RB , , the DT differences NNS were VBD not RB significant JJ on IN most JJS performance NN measures NNS . SENT The DT unrelated JJ external JJ category NN appears VVZ to TO be VB the DT worst JJS performer NN , , which WDT presents VVZ a DT dilemma NN because IN this DT strategy NN has VHZ dominated VVN the DT conglomerate NN movement NN . SENT Varadarajan NP , , P NN . SENT Rajan NP . SENT Ramanujam NP , , Vasudevan NP 1990 CD The DT Corporate JJ Performance NN Conundrum NN . SENT A DT Synthesis NN of IN Contemporary NP Views NNS and CC an DT Extension NP . SENT Journal NP of IN Management NP Studies NPS , , 27 CD 5 CD . SENT 463 CD 483 CD . SENT Articles NNS on IN 74 CD companies NNS rated VVN by IN Business NP Month NN as IN being VBG one CD of IN the DT 5 CD best JJS managed VVN firms NNS during IN each DT of IN the DT 15 CD years NNS in IN the DT period NN 1972 CD 1986 CD were VBD content NN analyzed VVD in IN an DT effort NN to TO isolate VV the DT key JJ strategic JJ and CC organizational JJ factors NNS associated VVN with IN superior JJ corporate JJ performance NN . SENT The DT results NNS indicate VVP that DT superior JJ performance NN is VBZ associated VVN with IN . SENT 1 LS . SENT a DT broad JJ product NN line NN accompanied VVN by IN geographic JJ diversity NN , , 2 CD . SENT an DT emphasis NN on IN planning NN coupled VVN with IN sound JJ financial JJ controls NNS and CC reporting VVG systems NNS , , 3 CD . SENT a DT high JJ level NN of IN commitment NN to TO product NN and CC process NN innovation NN , , 4 CD . SENT investments NNS in IN modernization NN of IN manufacturing NN facilities NNS , , 5 CD . SENT a DT reputation NN for IN superior JJ quality NN and CC customer NN service NN , , and CC 6 CD . SENT progressive JJ human JJ resource NN management NN practices NNS . SENT These DT findings NNS are VBP compared VVN to TO the DT conclusions NNS of IN other JJ recent JJ studies NNS . SENT Far RB from IN being VBG the DT result NN of IN applying VVG any DT particular JJ formula NN , , superior JJ performance NN is VBZ found VVN to TO require VV a DT diverse JJ mix NN of IN competencies NNS and CC values NNS . SENT Baysinger NP , , Barry NP . SENT Hoskisson NP , , Robert NP E NP . SENT 1989 CD Diversification NN Strategy NP and CC R NP D NP Intensity NN in IN Multiproduct NN Firms NNS . SENT Academy NP of IN Management NP Journal NP , , 32 CD 2 CD . SENT 310 CD 332 CD . SENT A DT study NN explored VVD the DT relationship NN between IN corporate JJ diversification NN strategy NN and CC research NN and CC development NN R NP D NP spending NN decisions NNS in IN large JJ multiproduct NN firms NNS . SENT The DT data NNS were VBD collected VVN from IN 971 CD companies NNS included VVN in IN Standard NP Poor's NP COMPUSTAT NP Services NPS database NN . SENT The DT results NNS provide VVP empirical JJ evidence NN that IN the DT choice NN of IN diversification NN strategy NN systematically RB affects VVZ R NP D NP intensity NN in IN large JJ multiproduct NN companies NNS . SENT R NP D NP intensity NN in IN dominant JJ business NN firms NNS was VBD shown VVN to TO be VB significantly RB higher JJR than IN in IN related JJ and CC unrelated JJ business NN firms NNS . SENT It PP was VBD also RB higher JJR in IN related VVN business NN firms NNS than IN in IN unrelated JJ business NN firms NNS . SENT The DT results NNS suggest VVP the DT need NN to TO examine VV the DT implications NNS of IN different JJ types NNS of IN corporate JJ diversification NN strategy NN on IN the DT management NN of IN corporate JJ strategic JJ business NN unit NN relations NNS in IN large JJ multiproduct NN corporations NNS . SENT Chang NP , , Yegmin NP . SENT Thomas NP , , Howard NP 1989 CD The DT Impact NN of IN Diversification NN Strategy NN on IN Risk NN Return NN Performance NN . SENT Strategic NP Management NP Journal NP , , 10 CD 3 CD . SENT 271 CD 284 CD . SENT A DT study NN examined VVD the DT impact NN of IN diversification NN strategy NN on IN risk NN and CC return NN in IN 64 CD diversified JJ firms NNS . SENT Data NNS were VBD drawn VVN from IN Standard NP Poor's NP COMPUSTAT NP I NP and CC COMPUSTAT NP II NP and CC the DT Census NP of IN Manufacturing NP for IN 1977 CD 1981 CD . SENT Relationships NNS between IN risk NN , , return NN , , and CC diversification NN are VBP hypothesized VVN . SENT Results NNS from IN regression NN analysis NN show NN that IN differences NNS in IN risk NN return NN performance NN among IN diversified JJ firms NNS were VBD more JJR closely RB associated VVN with IN markets NNS and CC businesses NNS than IN with IN the DT particular JJ diversification NN strategy NN chosen VVN . SENT Returns NNS also RB influenced VVD the DT choice NN of IN diversification NN strategies NNS , , which WDT , , in IN turn NN , , did VVD not RB get VV rewarded VVN with IN higher JJR profits NNS . SENT A DT curvilinear JJ risk NN return NN relationship NN was VBD observed VVN that WDT is VBZ consistent JJ with IN previous JJ theoretical JJ suggestions NNS . SENT However RB , , there EX was VBD no DT evidence NN supporting VVG the DT risk NN premium NN forms NNS of IN hypotheses NNS . SENT Geringer NP , , J NP . SENT Michael NP . SENT Beamish NP , , Paul NP W NP . SENT daCosta NP , , Richard NP C NP . SENT 1989 CD Diversification NN Strategy NN and CC Internationalization NN . SENT Implications NNS for IN MNE NP Performance NP . SENT Srategic NP Management NP Journal NP , , 10 CD 2 CD . SENT 109 CD 119 CD . SENT The DT concept NN of IN competitive JJ advantage NN is VBZ used VVN to TO examine VV performance NN variations NNS among IN multinational JJ enterprises NNS MNE NP . SENT Research NN variables NNS were VBD diversification NN strategy NN and CC degree NN of IN internationalization NN . SENT These DT involve VVP basic JJ components NNS of IN the DT companies NNS strategy NN range NN and CC relatedness NN of IN products NNS and CC relative JJ emphasis NN on IN foreign JJ versus CC domestic JJ operations NNS . SENT The DT sample NN of IN 200 CD MNEs NP included VVD 100 CD of IN the DT largest JJS firms NNS in IN the DT US NP and CC Europe NP . SENT Using VVG Rumelt's NP 1974 CD classification NN scheme NN , , each DT of IN the DT MNEs NP was VBD classified VVN according VVG to TO diversification NN strategy NN . SENT Degree NN of IN internationalization NN was VBD measured VVN by IN the DT ratio NN of IN a DT company's JJ foreign JJ subsidiaries NNS sales NNS to TO its PP$ total JJ global JJ sales NNS for IN 1977 CD 1981 CD . SENT Ratio NN of IN net JJ annual JJ profits NNS to TO sales NNS was VBD obtained VVN for IN each DT firm NN , , calculated VVN as IN the DT mean JJ aftertax JJ profits NNS to TO sales NNS during IN 1977 CD 1981 CD . SENT The DT results NNS show VVP that IN both DT diversification NN strategy NN and CC degree NN of IN internationalization NN were VBD significantly RB related VVN to TO MNE NP performance NN . SENT Ginsberg NP , , Ari NP 1989 CD Construing VVG the DT Business NP Portfolio NP . SENT A DT Cognitive JJ Model NP of IN Diversification NN . SENT Journal NP of IN Management NP Studies NPS , , 26 CD 4 CD . SENT 417 CD 438 CD . SENT Researchers NNS investigating VVG the DT relationship NN between IN diversification NN and CC performance NN have VHP been VBN generally RB inattentive JJ to TO the DT dominant JJ general JJ management NN logics NNS that IN corporate JJ level NN managers NNS use VVP to TO understand VV and CC manage VV strategy NN diversity NN . SENT In IN response NN to TO this DT , , the DT use NN of IN the DT repertory NN grid NN is VBZ proposed VVN . SENT The DT grid NN is VBZ a DT methodology NN adapted VVN from IN the DT work NN of IN Kelly NP 1955 CD and CC other JJ personal JJ construct NN theorists NNS . SENT As IN an DT approach NN to TO operationalizing VVG the DT mental JJ maps NNS that IN direct JJ the DT management NN of IN strategic JJ diversity NN , , the DT business NN repertory NN grid NN appears VVZ to TO have VH several JJ important JJ advantages NNS . SENT It PP is VBZ particularly RB useful JJ in IN assessing VVG the DT ways NNS in IN which WDT top JJ managers NNS construe VVP the DT corporate JJ portfolio NN and CC manage VV strategic JJ diversity NN . SENT Grid NN technique NN is VBZ flexible JJ , , efficient JJ , , and CC systematic JJ . SENT It PP is VBZ also RB highly RB reproducible JJ , , thus RB allowing VVG researchers NNS to TO validate VV or CC challenge VV the DT results NNS of IN previous JJ studies NNS . SENT A DT main JJ goal NN of IN the DT application NN of IN the DT repertory NN grid NN to TO the DT study NN of IN strategic JJ diversity NN is VBZ to TO measure VV the DT way NN in IN which WDT top JJ managers NNS perceive VVP relationships NNS among IN businesses NNS in IN their PP$ firms NNS . SENT Kim NP , , W NP . SENT Chan NP . SENT Hwang NP , , Peter NP . SENT Burgers NNS , , William NP P NN . SENT 1989 CD Global JJ Diversification NN Strategy NN and CC Corporate JJ Profit NN Performance NN . SENT Strategic NP Management NP Journal NP , , 10 CD 1 CD . SENT 45 CD 57 CD . SENT The DT influence NN of IN global JJ diversification NN strategy NN on IN corporate JJ profit NN performance NN was VBD examined VVN by IN studying VVG 62 CD multinational JJ companies NNS randomly RB selected VVN from IN Dun NP and CC Bradstreet's NP America's NP Corporate JJ Families NNS and CC International JJ Affiliates NNS . SENT The DT product NN and CC the DT international JJ market NN dimensions NNS of IN diversification NN were VBD integrated VVN , , and CC 4 CD distinct JJ strategic JJ modes NNS of IN global JJ diversification NN were VBD identified VVN . SENT Results NNS suggest VVP that IN the DT corporate JJ profit NN performance NN impact NN of IN related JJ and CC unrelated JJ diversification NN may MD vary VV depending VVG on IN the DT extent NN of IN a DT firm's JJ international JJ market NN diversification NN . SENT One CD important JJ implication NN of IN the DT study NN is VBZ that IN both DT managers NNS and CC business NN strategy NN researchers NNS should MD review VV corporate JJ diversification NN as IN having VHG distinct JJ but CC interactive JJ strategic JJ dimensions NNS product NN and CC international JJ markets NNS and CC they PP should MD recognize VV both CC the DT different JJ and CC the DT joint JJ effect NN of IN these DT dimensions NNS on IN corporate JJ profit NN performance NN . SENT Lubatkin NP , , Michael NP . SENT Rogers NP , , Ronald NP C NP . SENT 1989 CD Diversification NN , , Systematic JJ Risk NN , , and CC Shareholder NN Return NN . SENT A DT Capital NP Market NP Extension NP of IN Rumelt's NP 1974 CD Study NN . SENT Academy NP of IN Management NP Journal NP , , 32 CD 2 CD . SENT 454 CD 465 CD . SENT A DT study NN reexamined VVD the DT performance NN outcome NN of IN diversification NN strategies NNS by IN combining VVG the DT advantages NNS of IN security NN market NN based VVN measures NNS and CC Rumelt's NP 1974 CD classification NN scheme NN . SENT A DT multivariate JJ analysis NN of IN variance NN design NN was VBD employed VVN to TO simultaneously RB account VV for IN the DT effects NNS of IN corporate JJ diversification NN on IN risk NN and CC on IN return NN . SENT The DT results NNS underscore VVP the DT popular JJ , , but CC weakly RB supported VVN , , belief NN that IN controlled JJ diversity NN is VBZ associated VVN with IN the DT highest JJS performance NN . SENT Firms NNS that IN diversified JJ in IN a DT constrained VVN manner NN demonstrated VVD significantly RB lower JJR levels NNS of IN systematic JJ risk NN and CC significantly RB higher JJR levels NNS of IN shareholder NN returns NNS than IN firms NNS employing VVG other JJ strategies NNS . SENT The DT systematic JJ risk NN findings NNS suggest VVP that IN constrained VVN strategies NNS can MD achieve VV a DT reduction NN in IN risk NN that IN stockholders NNS cannot NN achieve VVP on IN their PP$ own JJ , , underscoring VVG the DT distinction NN between IN managing VVG a DT portfolio NN of IN securities NNS and CC managing VVG a DT portfolio NN of IN businesses NNS . SENT Nayyar NP , , Praveen NP . SENT McGee NP , , John NP . SENT Thomas NP , , Howard NP 1989 CD Research NP Notes NPS and CC Communications NPS Strategic NP Groups NNS . SENT A DT Comment NN . SENT A DT Further RBR Comment NN . SENT Strategic NP Management NP Journal NP , , 10 CD 1 CD . SENT 101 CD 107 CD . SENT A DT review NN of IN recent JJ studies NNS McGee NP , , Thomas NP , , 1986 CD on IN strategic JJ groups NNS that WDT notes VVZ limitations NNS with IN previous JJ studies NNS was VBD found VVN to TO have VH some DT weaknesses NNS , , including VVG . SENT 1 LS . SENT the DT omission NN of IN the DT fact NN that IN different JJ bases NNS of IN diversification NN could MD lead VV to TO differences NNS in IN economic JJ performance NN , , 2 CD . SENT the DT tendency NN to TO view VV firms NNS as IN following VVG pure JJ diversification NN strategies NNS , , and CC 3 CD . SENT the DT use NN of IN performance NN or CC firm NN output NN measures NNS as IN dimensions NNS to TO identify VV strategic JJ groups NNS . SENT In IN reply NN , , McGee NP and CC Thomas NP acknowledge VVP that IN very RB little JJ is VBZ known VVN empirically RB and CC that DT extensive JJ testing NN is VBZ required VVN . SENT The DT proposition NN remains VVZ valid JJ that IN systematic JJ similarities NNS and CC differences NNS exist VVP among IN firms NNS as IN a DT result NN of IN strategic JJ resource NN choices NNS . SENT An DT example NN is VBZ the DT decision NN to TO invest VV in IN assets NNS that WDT are VBP often RB difficult JJ and CC costly JJ to TO imitate VV . SENT Ramanujam NP , , Vasudevan NP . SENT Varadarajan NP , , P NN . SENT 1989 CD Research NN on IN Corporate JJ Diversification NN . SENT A DT Synthesis NN . SENT Strategic NP Management NP Journal NP , , 10 CD 6 CD . SENT 523 CD 551 CD . SENT Diversification NN has VHZ emerged VVN as IN a DT central JJ research NN topic NN in IN strategic JJ management NN . SENT Although IN the DT topic NN has VHZ been VBN widely RB and CC intensively RB studied VVN by IN scholars NNS from IN a DT variety NN of IN different JJ areas NNS , , a DT synthesis NN of IN these DT diverse JJ streams NNS of IN research NN is VBZ lacking VVG . SENT Such PDT a DT synthesis NN is VBZ presented VVN with IN a DT view NN to TO fostering VVG further RBR strategic JJ management NN research NN in IN this DT area NN by IN taking VVG a DT multidisciplinary JJ perspective NN on IN diversification NN . SENT A DT wide JJ ranging VVG literature NN search NN led VVN to TO the DT development NN of IN an DT overarching JJ research NN framework NN that WDT facilitates VVZ the DT classification NN of IN a DT vast JJ body NN of IN literature NN . SENT Proceeding VVG from IN this DT framework NN , , a DT critique NN of IN the DT literature NN is VBZ performed VVN that DT emphasizes VVZ studies NNS by IN strategic JJ management NN researchers NNS . SENT Five CD key JJ conceptual JJ and CC methodological JJ problems NNS are VBP identified VVN and CC discussed VVN . SENT Reed NP , , Richard NP . SENT Reed NP , , Margaret NP 1989 CD CEO NN Experience NN and CC Diversification NN Strategy NN Fit NN . SENT Journal NP of IN Management NP Studies NPS , , 26 CD 3 CD . SENT 251 CD 270 CD . SENT An DT examination NN was VBD made VVN of IN the DT impact NN of IN chief JJ executive JJ officer NN CEO NN experience NN upon IN strategy NN adoption NN and CC corporate JJ performance NN in IN the DT post NN implementation NN strategy NN phase NN . SENT A DT sample NN of IN 52 CD companies NNS was VBD identified VVN and CC chosen VVN to TO analyze VV the DT relationship NN between IN CEO NN experience NN and CC the DT separate JJ strategies NNS of IN internal JJ and CC acquisitive JJ diversification NN . SENT No DT evidence NN was VBD found VVN of IN an DT observable JJ relationship NN between IN CEO NN experience NN and CC selected JJ strategy NN , , expressed VVN in IN terms NNS of IN the DT manner NN in IN which WDT companies NNS choose VVP to TO diversify VV . SENT It PP was VBD shown VVN that IN the DT interaction NN effect NN between IN CEO NN experience NN and CC the DT selected VVN means NNS of IN diversification NN affects VVZ performance NN . SENT Companies NNS with IN a DT fit NN between IN CEO NN experience NN and CC the DT chosen VVN means NNS of IN diversification NN exhibit NN significantly RB different JJ features NNS of IN performance NN compared VVN to TO companies NNS where WRB there EX is VBZ no DT fit NN . SENT An DT experience NN strategy NN fit NN suggests VVZ astute JJ segmentation NN and CC high JJ commitment NN to TO the DT strategy NN . SENT Amit NP , , Raphael NP . SENT Livnat NP , , Joshua NP 1988 CD Diversification NN Strategies NNS , , Business NN Cycles NNS and CC Economic NP Performance NP . SENT Strategic NP Management NP Journal NP , , 9 CD 2 CD . SENT 99 CD 110 CD . SENT Two CD major JJ diversification NN strategies NNS of IN firms NNS are VBP investigated VVN . SENT 1 LS . SENT diversification NN into IN related JJ business NN , , and CC 2 CD . SENT diversification NN into IN unrelated JJ businesses NNS . SENT The DT first JJ strategy NN tries VVZ to TO exploit VV operating NN synergies NNS . SENT In IN the DT 2 CD nd NN , , the DT firm NN tries VVZ to TO gain VV financial JJ benefits NNS from IN its PP$ ability NN to TO increase VV financial JJ leverage NN due JJ to TO a DT greater JJR stability NN of IN cash NN flows NNS . SENT A DT large JJ sample NN of IN firms NNS is VBZ utilized VVN to TO assess VV empirically RB the DT benefits NNS and CC costs NNS of IN the DT 2 CD diversification NN strategies NNS using VVG a DT new JJ measure NN of IN diversification NN across IN business NN cycles NNS and CC economic JJ sectors NNS . SENT This DT measure NN is VBZ compared VVN with IN Berry NP Herfindahl NP type NN measures NNS of IN total JJ diversification NN and CC recent JJ measures NNS of IN diversification NN into IN related JJ businesses NNS . SENT The DT results NNS indicate VVP that IN pure JJ financial JJ diversification NN is VBZ associated VVN with IN . SENT 1 LS . SENT more RBR stable JJ cash NN flows NNS , , 2 CD . SENT increased JJ leverage NN levels NNS , , and CC 3 CD . SENT lower JJR profitability NN . SENT However RB , , firms NNS that WDT diversify VV into IN related JJ business NN do VVP seem VV to TO have VH higher JJR profits NNS than IN their PP$ nondiversified JJ counterparts NNS . SENT Balakrishnan NP , , Srinivasan NP 1988 CD The NP Prognostics NNS of IN Diversifying VVG Acquisitions NNS . SENT Strategic NP Management NP Journal NP , , 9 CD 2 CD . SENT 185 CD 196 CD . SENT A DT possible JJ explanation NN is VBZ offered VVN for IN the DT discrepancy NN between IN the DT observed JJ increase NN in IN the DT number NN of IN diversified JJ firms NNS in IN the DT US NP and CC the DT evidence NN from IN finance NN studies NNS that IN at IN best JJS offers NNS weak JJ support NN for IN value NN creation NN in IN diversifying VVG acquisitions NNS . SENT It PP is VBZ argued VVN that IN the DT acquisition NN could MD be VB the DT culmination NN of IN a DT series NN of IN related JJ strategic JJ moves NNS by IN the DT acquiring VVG company NN to TO enter VV a DT new JJ industry NN , , and CC therefore RB , , a DT significant JJ fraction NN of IN the DT gains NNS from IN synergy NN could MD have VH been VBN anticipated VVN by IN the DT capital NN market NN well RB ahead RB of IN the DT acquisition NN . SENT The DT results NNS of IN an DT event NN study NN of IN the DT 1984 CD acquisition NN of IN Rolm NP Corp NP . SENT , , the DT world's JJ 2 CD nd NN largest JJS manufacturer NN of IN PBXs NP in IN the DT US NP , , by IN IBM NP Corp NP . SENT , , the DT world's JJ largest JJS computer NN manufacturer NN , , and CC the DT stock NN market's NN reaction NN support VV this DT explanation NN . SENT The DT Rolm NP acquisition NN came VVD at IN the DT end NN of IN a DT series NN of IN moves NNS by IN IBM NP aimed VVN at IN entering VVG the DT US NP PBX NP market NN . SENT Having VHG anticipated VVN the DT move NN , , the DT stock NN market NN reacted VVD weakly RB to TO IBM's NP acquisition NN of IN all DT of IN Rolm's NP stock NN . SENT Capon NN , , Noel NP . SENT Hulbert NP , , James NP M NP . SENT Farley NP , , John NP U NP . SENT Martin NP , , L NP . SENT Elizabeth NP 1988 CD Corporate JJ Diversity NN and CC Economic NP Performance NP . SENT The DT Impact NN of IN Market NN Specialization NN . SENT Strategic NP Management NP Journal NP , , 9 CD 1 CD . SENT 61 CD 74 CD . SENT A DT market NN based VVN typology NN of IN corporate JJ strategy NN is VBZ introduced VVN , , which WDT builds VVZ on IN typologies NNS by IN Rumelt NP 1974 CD , , 1982 CD . SENT The DT new JJ typology NN is VBZ based VVN on IN critical JJ values NNS of IN a DT series NN of IN 3 CD ratios NNS . SENT 1 LS . SENT Rumelt's NP specialization NN ratio NN , , the DT proportion NN of IN a DT firm's JJ revenues NNS attributable JJ to TO its PP$ largest JJS single JJ business NN , , 2 CD . SENT a DT category NN ratio NN , , the DT proportion NN of IN revenues NNS attributable JJ to TO the DT largest JJS market NN category NN , , and CC 3 CD . SENT a DT product NN ratio NN , , the DT proportion NN of IN a DT company's JJ revenues NNS attributable JJ to TO its PP$ largest JJS product NN group NN . SENT It PP is VBZ proposed VVN that IN , , because IN different JJ markets NNS require VVP varying VVG skills NNS for IN success NN , , firms NNS that WDT focus VVP in IN one CD market NN area NN consumer NN or CC industrial JJ , , at IN given VVN diversification NN levels NNS , , should MD obtain VV superior JJ performance NN . SENT The DT sample NN consisted VVD of IN 112 CD corporations NNS . SENT Subjective JJ estimates NNS of IN firm's JJ sales NNS revenue NN are VBP collected VVN through IN interviews NNS with IN corporate JJ planning NN executives NNS . SENT Performance NN measures NNS are VBP return NN on IN capital NN and CC sales NNS growth NN for IN 1978 CD 1980 CD , , based VVN on IN Value NP Line NP data NNS . SENT Empirical JJ tests NNS support VVP the DT proposed VVN relationship NN between IN diversification NN strategy NN and CC financial JJ performance NN . SENT Grant NP , , Robert NP M NP . SENT 1988 CD On IN Dominant JJ Logic NN , , Relatedness NN and CC the DT Link NN Between IN Diversity NN and CC Performance NN . SENT Strategic NP Management NP Journal NP , , 9 CD 6 CD . SENT 639 CD 642 CD . SENT Prahalad NP and CC Bettis NP 1986 CD proposed VVD a DT new JJ concept NN , , dominant JJ general JJ management NN logic NN , , which WDT they PP contend VVP is VBZ central JJ to TO understanding VVG the DT connection NN between IN diversification NN strategy NN and CC firm NN performance NN . SENT The DT importance NN of IN dominant JJ logic NN is VBZ in IN emphasizing VVG business NN relatedness NN at IN the DT strategic JJ instead RB of IN the DT operational JJ level NN . SENT The DT problem NN of IN dominant JJ logic NN is VBZ that IN it PP is VBZ a DT cognitive JJ concept NN , , and CC this DT limits VVZ its PP$ applicability NN in IN academic JJ research NN and CC management NN practice NN . SENT It PP is VBZ contended VVN that IN the DT key JJ features NNS of IN dominant JJ logic NN are VBP shown VVN in IN the DT corporate JJ level NN functions NNS of IN the DT company NN and CC are VBP reflected VVN in IN the DT systems NNS through IN which WDT the DT diversified JJ corporation NN coordinates VVZ and CC controls VVZ its PP$ business NN units NNS . SENT Operationalizing VVG the DT idea NN of IN dominant JJ logic NN in IN this DT manner NN can MD assist VV in IN distinguishing VVG corporate JJ level NN relatedness NN based VVN upon IN dominant JJ logic NN from IN operational JJ relatedness NN and CC can MD enable VV the DT identification NN of IN the DT features NNS of IN strategic JJ similarity NN across IN business NN that WDT are VBP conducive JJ to TO high JJ levels NNS of IN corporate JJ level NN relatedness NN . SENT Grant NP , , Robert NP M NP . SENT Jammine NP , , Azar NP P NN . SENT Thomas NP , , Howard NP 1988 CD Diversity NN , , Diversification NN , , and CC Profitability NN Among IN British NP Manufacturing NP Companies NPS , , 1972 CD 84 CD . SENT Academy NP of IN Management NP Journal NP , , 31 CD 4 CD . SENT 771 CD 801 CD . SENT The DT causal JJ relationships NNS between IN diversity NN , , diversification NN , , and CC profitability NN were VBD investigated VVN for IN 304 CD large JJ UK NP manufacturing NN companies NNS that WDT differed VVD both DT in IN multinational JJ diversity NN and CC product NN . SENT Data NNS were VBD gathered VVN by IN eliminating VVG nonmanufacturing NN , , unlisted JJ , , and CC foreign JJ owned VVN firms NNS from IN the DT Times NP 1 CD , , 000 CD compilation NN of IN the DT largest JJS UK NP firms NNS in IN 1974 CD . SENT The DT primary JJ measure NN of IN firm NN profitability NN was VBD pretax JJ return NN on IN net JJ assets NNS . SENT variables NNS likely JJ to TO have VH an DT important JJ impact NN on IN profitability NN were VBD controlled VVN . SENT The DT effects NNS of IN diversity NN were VBD distinguished VVN from IN the DT effects NNS on IN profitability NN of IN other JJ variables NNS by IN the DT use NN of IN multiple JJ regression NN analysis NN . SENT The DT results NNS were VBD not RB clear JJ with IN respect NN to TO the DT underlying JJ causal JJ relationships NNS . SENT Profitability NN was VBD not RB increased VVN by IN product NN diversification NN , , and CC there EX was VBD limited VVN evidence NN that IN diversification NN was VBD promoted VVN by IN profitability NN . SENT However RB , , for IN multinational JJ diversification NN , , it PP was VBD found VVN that IN profitability NN in IN the DT home NN market NN encouraged VVD overseas JJ expansion NN , , which WDT , , in IN turn NN , , increased VVD profitability NN . SENT Grant NP , , Robert NP M NP . SENT Jammine NP , , Azar NP P NN . SENT 1988 CD Performance NP Differences NNS Between IN the DT Wrigley NP Rumelt NP Strategic NP Categories NNS . SENT Strategic NP Management NP Journal NP , , 9 CD 4 CD . SENT 333 CD 346 CD . SENT Differences NNS in IN profit NN and CC sales NNS performance NN between IN the DT various JJ Wrigley NP 1970 CD and CC Rumelt NP 1974 CD categories NNS of IN diversification NN strategy NN are VBP investigated VVN . SENT A DT sample NN of IN 305 CD large JJ UK NP manufacturing NN firms NNS covering VVG 1972 CD 1984 CD is VBZ reduced VVN to TO 186 CD companies NNS by IN the DT elimination NN of IN firms NNS that WDT moved VVD between IN strategic JJ categories NNS . SENT The DT analysis NN shows VVZ only RB weak JJ relationships NNS between IN diversification NN strategy NN and CC firm NN and CC industry NN characteristics NNS . SENT Between IN strategic JJ categories NNS , , only JJ company NN size NN is VBZ significantly RB different JJ . SENT The DT more RBR diversified JJ related JJ business NN and CC unrelated JJ business NN strategies NNS are VBP more RBR profitable JJ than IN the DT more RBR specialized JJ single JJ business NN and CC dominant JJ business NN strategies NNS . SENT There EX is VBZ little JJ evidence NN that IN closely RB related VVN diversification NN is VBZ more RBR profitable JJ than IN unrelated JJ diversification NN . SENT The DT related JJ business NN strategy NN is VBZ not RB superior JJ to TO the DT unrelated JJ strategy NN on IN the DT Wrigley NP classification NN , , and CC the DT constrained VVN diversification NN categories NNS failed VVD to TO outperform VV the DT linked VVN diversification NN categories NNS on IN the DT Rumelt NP classification NN . SENT Grinyer NP , , Peter NP H NP . SENT McKiernan NP , , Peter NP . SENT Yasai NP Ardekani NP , , Masoud NP 1988 CD Market NN , , Organizational JJ and CC Managerial JJ Correlates NNS of IN Economic NP Performance NP in IN the DT U NP . SENT K NP . SENT Electrical NP Engineering NP Industry NP . SENT Strategic NP Management NP Journal NP , , 9 CD 4 CD . SENT 297 CD 318 CD . SENT The DT strategic JJ , , market NN , , planning NN , , and CC organizational JJ contingencies NNS that WDT bear VVP on IN economic JJ performance NN are VBP considered VVN conjointly RB . SENT Hypotheses NNS concerning VVG market NN , , organizational JJ , , and CC managerial JJ determinants NNS of IN profitability NN and CC growth NN are VBP developed VVN and CC tested VVN with IN data NNS collected VVN by IN structured JJ interviews NNS in IN 45 CD randomly RB chosen VVN firms NNS in IN the DT UK NP electrical JJ engineering NN industry NN . SENT Multiple JJ regression NN analysis NN suggests VVZ that DT market NN share NN and CC barriers NNS to TO entry NN are VBP the DT main JJ determinants NNS of IN profit NN margins NNS . SENT Tightness NN of IN control NN of IN working VVG capital NN and CC aggressive JJ management NN style NN also RB have VHP a DT significant JJ impact NN . SENT Centralization NN of IN decision NN taking VVG among IN smaller JJR firms NNS is VBZ linked VVN to TO greater JJR profitability NN , , while IN more JJR extensive JJ budgetary JJ control NN and CC planning NN of IN acquisitions NNS or CC diversification NN are VBP correlated VVN negatively RB with IN the DT latter NN . SENT The DT most RBS important JJ predictor NN of IN the DT rate NN of IN company NN growth NN of IN sales NNS is VBZ profitability NN . SENT However RB , , constraints NNS from IN organized JJ labor NN and CC financial JJ sources NNS , , conservative JJ management NN styles NNS , , the DT product NN change NN rate NN , , research NN and CC development NN intensity NN , , and CC decentralization NN all RB entered VVD significantly RB . SENT Hill NP , , Charles NP W NP . SENT L NP . SENT Snell NP , , Scott NP A NP . SENT 1988 CD External NP Control NP , , Corporate NP Strategy NP , , and CC Firm NN Performance NN in IN Research NP Intensive JJ Industries NPS . SENT Strategic NP Management NP Journal NP , , 9 CD 6 CD . SENT 577 CD 590 CD . SENT The DT proposition NN that IN the DT divergence NN of IN interest NN between IN managers NNS and CC stockholders NNS has VHZ implications NNS for IN corporate JJ strategy NN and CC company NN profitability NN is VBZ investigated VVN . SENT Stockholders NNS prefer VVP strategies NNS that WDT maximize VV their PP$ wealth NN while IN managers NNS prefer VVP strategies NNS that WDT maximize VV their PP$ utility NN . SENT In IN research NN intensive JJ industries NNS , , it PP is VBZ theorized VVD that IN innovation NN strategies NNS are VBP favored VVN when WRB stockholders NNS dominate VVP and CC that WDT , , when WRB managers NNS dominate VVP , , diversification NN strategies NNS are VBP favored VVN . SENT Innovation NN is VBZ contended VVN to TO be VB linked VVN with IN greater JJR company NN profitability NN than IN diversification NN . SENT The DT theory NN is VBZ tested VVN on IN 94 CD Fortune NP 500 CD firms NNS from IN the DT listing NN for IN 1980 CD . SENT The DT firms NNS are VBP from IN 5 CD industries NNS with IN research NN and CC development NN expenditures NNS of IN more JJR than IN 2 CD as IN a DT proportion NN of IN sales NNS and CC with IN at IN least JJS 10 CD firms NNS in IN the DT Fortune NP 500 CD . SENT The DT results NNS largely RB confirm VVP the DT theoretical JJ predictions NNS and CC provide VV evidence NN in IN support NN of IN the DT contention NN that IN management NN stockholdings NNS can MD align VV management NN and CC stockholder NN interests NNS by IN way NN of IN their PP$ influence NN upon IN diversification NN strategy NN . SENT Hoskisson NP , , Robert NP E NP . SENT Hitt NP , , Michael NP A NP . SENT 1988 CD Strategic NP Control NP Systems NPS and CC Relative JJ R NP D NP Investment NP in IN Large JJ Multiproduct NN Firms NNS . SENT Strategic NP Management NP Journal NP , , 9 CD 6 CD . SENT 605 CD 621 CD . SENT It PP is VBZ hypothesized VVN that IN tight JJ financial JJ controls NNS linked VVN with IN large JJ diversified JJ multidivisional JJ M NP form NN companies NNS lead VVP to TO a DT short JJ term NN , , low JJ risk NN orientation NN and CC thereby RB lower RBR relative JJ investment NN in IN research NN and CC development NN R NP D NP . SENT Also RB , , it PP is VBZ hypothesized VVN that IN increasing VVG levels NNS of IN diversification NN necessitate VV different JJ control NN systems NNS that WDT have VHP substantial JJ implications NNS for IN investing VVG in IN R NP D NP . SENT Data NNS about IN type NN of IN structure NN and CC diversification NN strategy NN are VBP obtained VVN from IN 249 CD surveys NNS received VVN from IN Fortune NP 1 CD , , 000 CD industrial JJ firms NNS . SENT Data NNS on IN R NP D NP intensity NN is VBZ available JJ on IN 124 CD of IN these DT companies NNS 81 CD M NP form NN and CC 43 CD more JJR centralized JJ functional JJ U NP form NN . SENT Data NNS are VBP analyzed VVN through IN analysis NN of IN variance NN and CC covariance NN and CC correlation NN analysis NN . SENT Results NNS suggest VVP that IN less JJR diversified JJ U NP form NN firms NNS invest VVP more RBR heavily RB in IN R NP D NP than IN more JJR diversified JJ M NP form NN firms NNS after IN controlling VVG for IN size NN and CC industry NN effects NNS . SENT Dominant JJ business NN firms NNS invested VVD more JJR in IN R NP D NP than IN either DT related JJ or CC unrelated JJ business NN firms NNS . SENT The DT link NN between IN R NP D NP intensity NN and CC market NN performance NN is VBZ negative JJ for IN related JJ and CC unrelated JJ firms NNS . SENT Jones NP , , Gareth NP R NP . SENT Hill NP , , Charles NP W NP . SENT L NP . SENT 1988 CD Transaction NN Cost NN Analysis NN of IN Strategy NN Structure NN Choice NN . SENT Strategic NP Management NP Journal NP , , 9 CD 2 CD . SENT 159 CD 172 CD . SENT Using VVG a DT transaction NN cost NN approach NN , , the DT relationship NN between IN corporate JJ strategy NN , , structure NN , , and CC organizational JJ performance NN is VBZ analyzed VVN . SENT Three CD main JJ strategies NNS for IN realizing VVG economic JJ benefits NNS are VBP vertical JJ integration NN , , related JJ diversification NN , , and CC unrelated JJ diversification NN . SENT Firms NNS must MD trade VV off RP the DT economic JJ gains NNS from IN the DT different JJ strategies NNS against IN the DT bureaucratic JJ costs NNS associated VVN with IN the DT realization NN of IN those DT gains NNS . SENT In IN this DT study NN , , 3 CD related JJ issues NNS are VBP addressed VVN . SENT 1 LS . SENT What WP determines VVZ the DT limit NN to TO growth NN via IN internalization NN for IN a DT firm NN pursuing VVG a DT particular JJ strategy NN . SENT 2 LS . SENT Why WRB does VVZ a DT firm NN pursue VV different JJ strategies NNS for IN achieving VVG growth NN . SENT 3 LS . SENT What WP determines VVZ changes NNS in IN the DT strategy NN and CC structure NN used VVN by IN the DT organization NN over IN time NN . SENT Strategy NN and CC structure NN need VVP to TO be VB separated VVN longitudinally RB for IN the DT issues NNS to TO have VH relevance NN . SENT Whether IN related JJ diversification NN is VBZ more RBR profitable JJ than IN unrelated JJ diversification NN depends VVZ upon IN the DT interaction NN of IN intrinsic JJ and CC exogenous JJ factors NNS in IN any DT given VVN situation NN . SENT Keats NP , , Barbara NP W NP . SENT Hitt NP , , Michael NP A NP . SENT 1988 CD A NP Causal JJ Model NP of IN Linkages NNS Among IN Environmental JJ Dimensions NNS , , Macro NN Organizational JJ Characteristics NNS , , and CC Performance NP . SENT Academy NP of IN Management NP Journal NP , , 31 CD 3 CD . SENT 570 CD 598 CD . SENT In IN response NN to TO suggestions NNS from IN previous JJ research NN regarding VVG linkages NNS among IN environmental JJ conditions NNS , , organization NN size NN , , strategy NN , , and CC economic JJ performance NN , , a DT study NN developed VVD and CC tested VVD an DT initial JJ integrative JJ general JJ system NN model NN which WDT integrates VVZ key JJ variables NNS from IN 3 CD models NNS . SENT Identified VVN by IN Romanelli NP and CC Tushman NP 1986 CD , , these DT are VBP . SENT an DT external JJ control NN model NN , , a DT strategic JJ management NN model NN , , and CC an DT inertial JJ model NN . SENT Data NNS were VBD taken VVN from IN 110 CD firms NNS representing VVG a DT broad JJ range NN of IN industries NNS . SENT After IN initial JJ analysis NN using VVG LISREL NP VI NP , , which WDT allowed VVD simultaneous JJ analysis NN of IN a DT set NN of IN complex JJ interrelationships NNS , , the DT model NN was VBD reformulated VVN by IN deleting VVG those DT parameters NNS which WDT were VBD nonsignificant JJ . SENT Final JJ results NNS provide VVP support NN for IN all DT 3 CD models NNS . SENT Specifically RB , , it PP was VBD indicated VVN that IN . SENT 1 LS . SENT environmental JJ instability NN had VHD a DT negative JJ effect NN on IN levels NNS of IN divisionalization NN and CC diversification NN , , 2 CD . SENT strategy NN was VBD related VVN to TO structure NN , , and CC 3 CD . SENT the DT strategy NN structure NN relationship NN was VBD not RB mediated VVN by IN size NN . SENT Smith NP , , Clayton NP G NP . SENT Cooper NP , , Arnold NP C NP . SENT 1988 CD Established JJ Companies NNS Diversifying VVG into IN Young NP Industries NPS . SENT A DT Comparison NN of IN Firms NNS with IN Different NP Levels NP of IN Performance NP . SENT Strategic NP Management NP Journal NP , , 9 CD 2 CD . SENT 111 CD 121 CD . SENT Differences NNS in IN performance NN among IN established JJ firms NNS diversifying VVG into IN young JJ industries NNS are VBP analyzed VVN , , and CC hypotheses NNS concerning VVG 11 CD corporate JJ level NN strategic JJ and CC organizational JJ variables NNS are VBP examined VVN . SENT The DT analysis NN relies VVZ on IN both DT multi NNS industry NN data NNS and CC single JJ industry NN data NNS . SENT Multi NNS industry NN data NNS are VBP from IN . SENT 1 LS . SENT the DT US NP microwave NN oven NN industry NN , , 2 CD . SENT the DT US NP color NN television NN set NN industry NN , , 3 CD . SENT the DT US NP pocket NN calculator NN industry NN , , 4 CD . SENT the DT US NP transistor NN industry NN , , and CC 5 CD . SENT the DT US NP computer NN tomography NN CT NP scanner NN industry NN . SENT The DT single JJ industry NN data NNS apply VVP to TO the DT US NP microwave NN oven NN industry NN . SENT Performance NN is VBZ found VVN to TO be VB associated VVN with IN firm NN size NN and CC financial JJ strength NN , , time NN of IN entry NN , , and CC the DT maturity NN of IN the DT firm's JJ markets NNS . SENT The DT importance NN of IN several JJ of IN the DT variables NNS appears VVZ to TO change VV as IN the DT industry NN evolves VVZ . SENT For IN example NN , , in IN the DT microwave NN oven NN industry NN , , for IN product NN market NN maturity NN , , the DT negative JJ association NN with IN performance NN is VBZ found VVN to TO be VB more RBR significant JJ for IN the DT earlier JJR growth NN period NN 1972 CD 1977 CD than IN for IN the DT later JJR growth NN stage NN 1978 CD 1983 CD . SENT Williams NP , , Jeffrey NP R NP . SENT Paez NP , , Betty NP Lynn NP . SENT Sanders NP , , Leonard NP 1988 CD Conglomerates NNS Revisited NP . SENT Strategic NP Management NP Journal NP , , 9 CD 5 CD . SENT 403 CD 414 CD . SENT Recent JJ research NN on IN corporate JJ restructuring NN has VHZ drawn VVN conclusions NNS that WDT are VBP contradictory JJ when WRB applied VVN to TO conglomerates NNS . SENT An DT overview NN of IN recent JJ literature NN on IN conglomerates NNS is VBZ presented VVN . SENT Based VVN on IN the DT annual JJ Forbes NP lists NNS of IN conglomerates NNS from IN 1975 CD through IN 1984 CD , , a DT database NN of IN 389 CD acquisitions NNS and CC 357 CD divestitures NNS is VBZ constructed VVN for IN the DT period NN . SENT The DT sample NN is VBZ examined VVN for IN changes NNS in IN conglomerate NN behavior NN as IN manifested VVN in IN acquisition NN and CC divestiture NN decisions NNS . SENT Results NNS indicate VVP that IN , , through IN the DT sample NN period NN , , conglomerate NN managers NNS were VBD actively RB redefining VVG the DT scope NN of IN the DT conglomerate NN enterprise NN by IN reducing VVG the DT number NN of IN businesses NNS managed VVN and CC by IN increasing VVG the DT average JJ degree NN of IN business NN relatedness NN within IN the DT overall JJ enterprise NN . SENT However RB , , the DT findings NNS are VBP not RB conclusive JJ because IN the DT field NN is VBZ too RB large JJ and CC , , at IN least JJS theoretically RB , , too RB complex JJ to TO lend VV itself PP to TO definitive JJ analysis NN . SENT Buhner NP , , Rolf NP 1987 CD Assessing VVG International NP Diversification NN of IN West JJ German JJ Corporations NNS . SENT Strategic NP Management NP Journal NP , , 8 CD 1 CD . SENT 25 CD 37 CD . SENT An DT attempt NN is VBZ made VVN to TO analyze VV the DT effects NNS of IN international JJ diversification NN of IN firms NNS in IN Germany NP on IN market NN performance NN . SENT The DT analysis NN is VBZ based VVN on IN a DT sample NN comprising VVG 40 CD large JJ German JJ corporations NNS among IN the DT top JJ 300 CD firms NNS in IN the DT country NN , , and CC the DT period NN examined VVN is VBZ 1966 CD 1981 CD . SENT Diversification NN is VBZ measured VVN quantitatively RB and CC categorically RB . SENT A DT number NN of IN variables NNS are VBP modeled VVN in IN a DT multiple JJ regression NN approach NN , , including VVG . SENT 1 LS . SENT size NN and CC growth NN , , 2 CD . SENT ownership NN structure NN and CC internal JJ multidivisional JJ M NP form NN structure NN , , and CC 3 CD . SENT financial JJ leverage NN . SENT The DT results NNS suggest VVP that IN international JJ corporate JJ diversification NN may MD be VB perceived VVN by IN shareholders NNS as IN a DT wealth NN increasing VVG measure NN . SENT Specifically RB , , the DT results NNS suggest VVP that IN internationalization NN and CC domestic JJ product NN expansion NN are VBP 2 CD alternative JJ diversification NN options NNS in IN view NN of IN shareholders NNS wealth NN . SENT Domestic JJ product NN diversity NN seems VVZ to TO be VB motivated VVN by IN internal JJ push NN stimuli NNS , , while IN internationalization NN seems VVZ to TO be VB pulled VVN by IN external JJ stimuli NNS . SENT Dubofsky NP , , Paulette NP . SENT Varadarajan NP , , P NN . SENT Rajan NP 1987 CD Diversification NN and CC Measures NNS of IN Performance NP . SENT Additional JJ Empirical JJ Evidence NN . SENT Academy NP of IN Management NP Journal NP , , 30 CD 3 CD . SENT 597 CD 608 CD . SENT The DT findings NNS of IN Michel NP and CC Shaked JJ 1984 CD are VBP reexamined VVN and CC their PP$ work NN extended VVN by IN examining VVG the DT relationship NN between IN diversification NN strategy NN and CC performance NN using VVG both CC an DT accounting NN measure NN and CC market NN measures NNS of IN performance NN . SENT The DT same JJ firms NNS 51 CD firms NNS from IN the DT Fortune NP 250 CD list NN and CC the DT same JJ time NN period NN 1975 CD 1981 CD are VBP used VVN . SENT However RB , , 3 CD of IN the DT firms NNS are VBP excluded VVN because IN use NN of IN Rumelt's NP 1974 CD rules NNS for IN categorization NN leads VVZ the DT firms NNS to TO be VB classified VVN as IN either DT dominant JJ business NN or CC single JJ business NN firms NNS . SENT Three CD main JJ findings NNS emerge VVP . SENT 1 LS . SENT There EX is VBZ a DT high JJ degree NN of IN interrater JJR agreement NN between IN the DT computations NNS of IN Michel NP Shaked JJ MS NN and CC the DT present JJ computations NNS . SENT 2 LS . SENT The DT characteristics NNS of IN 4 CD firms NNS with IN fairly RB high JJ performance NN and CC mid JJ range NN relatedness NN ratios NNS and CC their PP$ group NN assignments NNS appear VVP to TO have VH influenced VVN the DT significant JJ differences NNS in IN performance NN between IN diversification NN groups NNS reported VVD by IN MS NN . SENT 3 LS . SENT The DT type NN of IN performance NN measure NN used VVD seems VVZ to TO lead VV to TO conflicting JJ inferences NNS about IN the DT relationship NN between IN diversification NN strategy NN and CC a DT firm's NNS performance NN . SENT Hopkins NP , , H NP . SENT Donald NP 1987 CD Acquisition NP Strategy NP and CC the DT Market NP Position NN of IN Acquiring VVG Firms NNS . SENT Strategic NP Management NP Journal NP , , 8 CD 6 CD . SENT 535 CD 547 CD . SENT Three CD acquisition NN strategies NNS are VBP employed VVN to TO hypothesize VV differences NNS in IN the DT market NN position NN of IN acquisitive JJ firms NNS . SENT The DT strategies NNS are VBP . SENT 1 LS . SENT conglomerate NN acquisition NN of IN companies NNS in IN areas NNS unrelated JJ to TO the DT acquiring VVG firms's NNS main JJ business NN , , 2 CD . SENT technology NN related JJ acquisition NN of IN firms NNS with IN the DT same JJ or CC similar JJ production NN techniques NNS or CC product NN technology NN , , and CC 3 CD . SENT marketing VVG related JJ acquisition NN of IN firms NNS with IN markets NNS homogeneous JJ to TO those DT of IN the DT acquiring VVG firm NN . SENT The DT sample NN used VVD consists VVZ of IN 64 CD firms NNS from IN the DT 1965 CD Fortune NP 1 CD , , 000 CD that WDT were VBD active JJ acquirers NNS during IN the DT 1965 CD 1979 CD period NN . SENT The DT data NNS are VBP analyzed VVN by IN comparing VVG the DT mean JJ values NNS associated VVN with IN each DT strategy NN on IN 4 CD market NN position NN variables NNS , , measures NNS of IN . SENT 1 LS . SENT market NN share NN , , 2 CD . SENT market NN concentration NN , , 3 CD . SENT market NN growth NN , , and CC 4 CD . SENT market NN profitability NN . SENT The DT results NNS show VVP that IN , , while IN acquisitive JJ growth NN generally RB is VBZ associated VVN with IN a DT decline NN in IN market NN position NN , , the DT marketing NN related JJ strategy NN is VBZ associated VVN with IN a DT distinctly RB superior JJ position NN . SENT Firms NNS using VVG this DT strategy NN are VBP found VVN to TO be VB in IN more JJR profitable JJ industries NNS and CC to TO have VH higher JJR market NN shares NNS in IN these DT industries NNS . SENT Hopkins NP , , H NP . SENT Donald NP , , 1987 CD Long NP Term NP Acquisition NP Strategies NP in IN the DT U NP . SENT S NP . SENT Economy NN . SENT Journal NP of IN Management NP , , 13 CD 3 CD . SENT 557 CD 572 CD . SENT Despite IN research NN suggesting VVG that IN the DT use NN of IN consistent JJ long JJ term NN acquisition NN strategies NNS should MD be VB beneficial JJ , , there EX is VBZ evidence NN that IN acquisitive JJ firms NNS do VVP not RB use VV such JJ strategies NNS . SENT A DT study NN was VBD conducted VVN to TO determine VV whether IN acquisitive JJ firms NNS show VVP , , by IN their PP$ externally RB observable JJ patterns NNS of IN behavior NN , , evidence NN of IN pursuing VVG consistent JJ long JJ term NN strategies NNS . SENT If IN so RB , , an DT attempt NN was VBD made VVN to TO determine VV the DT nature NN of IN these DT strategies NNS and CC whether IN they PP are VBP associated VVN with IN superior JJ performance NN . SENT Using VVG a DT sample NN of IN 103 CD Fortune NP 1 CD , , 000 CD companies NNS for IN the DT period NN 1965 CD 1979 CD , , the DT results NNS show VVP that IN the DT majority NN of IN the DT firms NNS did VVD appear VV to TO follow VV acquisition NN strategies NNS that WDT were VBD consistent JJ over IN time NN . SENT About IN half NN of IN the DT companies NNS followed VVD one CD of IN 2 CD highly RB consistent JJ strategies NNS a DT marketing NN related VVN strategy NN or CC a DT technology NN related JJ one NN . SENT While IN the DT consistency NN of IN a DT firm's JJ acquisition NN strategy NN was VBD found VVN not RB to TO be VB associated VVN with IN better JJR performance NN , , strategies NNS that IN exhibited VVN strategic JJ fit NN did VVD show VV superior JJ profitability NN . SENT Johnson NP , , Gerry NP . SENT Thomas NP , , Howard NP 1987 CD The DT Industry NN Context NN of IN Strategy NP , , Structure NN and CC Performance NN . SENT The DT U NP . SENT K NP . SENT Brewing NP Industry NP . SENT Strategic NP Management NP Journal NP , , 8 CD 4 CD . SENT 343 CD 361 CD . SENT An DT attempt NN is VBZ made VVN to TO identify VV influences NNS on IN the DT competitive JJ performance NN of IN companies NNS involved VVN in IN the DT UK NP brewing NN industry NN . SENT The DT influencing VVG factors NNS examined VVN include VVP . SENT 1 LS . SENT the DT characteristics NNS of IN the DT industry NN environment NN , , 2 CD . SENT the DT strategies NNS pursued VVN by IN companies NNS within IN the DT industry NN , , and CC 3 CD . SENT the DT performance NN achieved VVN by IN companies NNS adopting VVG different JJ competitive JJ strategies NNS . SENT A DT sample NN of IN 21 CD companies NNS is VBZ studied VVN . SENT It PP is VBZ shown VVN that IN more RBR focused VVN , , limited JJ diversification NN , , and CC regional JJ brewing NN strategies NNS may MD be VB preferable JJ in IN the DT UK NP brewing NN industry NN in IN contrast NN to TO prior JJ research NN findings NNS . SENT Thus RB , , support NN is VBZ provided VVN for IN the DT hypothesis NN that IN an DT optimum JJ level NN of IN diversification NN exists VVZ within IN an DT industry NN that WDT balances VVZ economies NNS of IN scope NN and CC diseconomies NNS of IN organizational JJ scale NN . SENT In IN the DT UK NP industry NN , , the DT traditional JJ single JJ or CC dominant JJ business NN brewers NNS seem VVP to TO have VH found VVN the DT strategy NN that WDT matches VVZ firms NNS effectively RB with IN the DT important JJ characteristics NNS of IN industry NN structure NN . SENT Napier NP , , Nancy NP Knox NP . SENT Smith NP , , Mark NP 1987 CD Product NN Diversification NN , , Performance NN Criteria NNS and CC Compensation NN at IN the DT Corporate NP Manager NP Level NP . SENT Strategic NP Management NP Journal NP , , 8 CD 2 CD . SENT 195 CD 201 CD . SENT A DT study NN was VBD conducted VVN to TO examine VV the DT potential JJ relationship NN between IN product NN diversification NN strategy NN and CC 3 CD human JJ resources NNS management NN practices NNS affecting VVG corporate JJ managers NNS , , namely RB . SENT 1 LS . SENT performance NN criteria NNS , , 2 CD . SENT bonus NN size NN , , and CC 3 CD . SENT bonus NN distribution NN method NN . SENT The DT study NN tested VVD empirically RB the DT idea NN embedded VVN in IN a DT model NN proposed VVN by IN Galbraith NP and CC Nathanson NP 1978 CD , , which WDT suggests VVZ that IN organizational JJ characteristics NNS vary VVP by IN level NN of IN product NN diversification NN . SENT The DT sample NN firms NNS were VBD 46 CD manufacturing NN firms NNS on IN the DT 1982 CD Fortune NP 1 CD , , 000 CD list NN . SENT The DT hypothesis NN that IN higher JJR diversified JJ firms NNS use VVP more JJR objective NN criteria NNS in IN evaluating VVG corporate JJ managers NNS was VBD not RB supported VVN . SENT However RB , , support NN was VBD provided VVN for IN the DT hypothesis NN that IN the DT proportion NN of IN executive JJ pay NN received VVN as IN a DT bonus NN would MD increase VV as IN a DT firm NN diversifies VVZ . SENT A DT 3 CD rd NN hypothesis NN , , that DT bonus NN allocation NN would MD be VB made VVN on IN a DT formula NN basis NN as IN firms NNS diversified JJ , , although IN not RB supported VVN statistically RB , , does VVZ reflect VV the DT general JJ predictions NNS of IN the DT model NN , , i NP . SENT e SYM . SENT , , that IN the DT use NN of IN a DT formula NN is VBZ more RBR likely JJ in IN diverse JJ firms NNS . SENT Porter NP , , Michael NP E NP . SENT 1987 CD From IN Competitive JJ Advantage NN to TO Corporate JJ Strategy NN . SENT Harvard NP Business NP Review NP , , 65 CD 3 CD . SENT 43 CD 59 CD . SENT There EX are VBP 2 CD levels NNS of IN strategy NN in IN a DT diversified JJ company NN . SENT 1 LS . SENT business NN unit NN or CC competitive JJ , , and CC 2 CD . SENT corporate JJ or CC companywide NN . SENT The DT diversification NN records NNS of IN 33 CD US NP companies NNS from IN 1950 CD 1986 CD show NN that IN , , on IN average NN , , firms NNS divested VVD more JJR than IN half PDT their PP$ acquisitions NNS in IN new JJ industries NNS and CC more JJR than IN 60 CD of IN their PP$ acquisitions NNS in IN entirely RB new JJ fields NNS . SENT Each DT corporation NN went VVD into IN an DT average NN of IN 80 CD new JJ industries NNS and CC 27 CD new JJ fields NNS , , with IN just RB over IN 70 CD of IN the DT new JJ entries NNS being NN acquisitions NNS , , 22 CD being NN start NN ups NNS , , and CC 8 CD being JJ joint JJ ventures NNS . SENT The DT 3 CD tests NNS for IN successful JJ diversification NN which WDT set VVD the DT standards NNS that IN any DT corporate JJ strategy NN must MD meet VV are VBP . SENT 1 LS . SENT the DT attractiveness NN test NN , , 2 CD . SENT the DT cost NN of IN entry NN test NN , , and CC 3 CD . SENT the DT better RBR off JJ test NN . SENT Concepts NNS of IN corporate JJ strategy NN identified VVN from IN the DT diversification NN records NNS studied VVN include VVP . SENT 1 LS . SENT portfolio NN management NN , , 2 CD . SENT restructuring NN , , 3 CD . SENT transferring VVG skills NNS , , and CC 4 CD . SENT sharing NN activities NNS . SENT All DT 4 CD ideas NNS of IN strategy NN have VHP succeeded VVN under IN the DT right JJ circumstances NNS . SENT Prahalad NP , , C NP . SENT K NP . SENT Bettis NP , , Richard NP A NP . SENT 1986 RB The DT Dominant JJ Logic NN . SENT A DT New NP Linkage NN Between IN Diversity NN and CC Performance NN . SENT Strategic NP Management NP Journal NP , , 7 CD 6 CD . SENT 485 CD 501 CD . SENT A DT linkage NN between IN diversification NN and CC performance NN is VBZ proposed VVN and CC examined VVN . SENT The DT proposed VVN conceptual JJ framework NN linking VVG diversity NN and CC performance NN is VBZ based VVN on IN 4 CD premises NNS . SENT 1 LS . SENT Top JJ management NN is VBZ a DT collection NN of IN key JJ individuals NNS who WP significantly RB influence VVP the DT way NN the DT company NN is VBZ managed VVN . SENT 2 LS . SENT The DT strategic JJ characteristics NNS of IN the DT firm's NNS businesses NNS vary VVP according VVG to TO their PP$ underlying JJ structures NNS , , technologies NNS , , and CC customers NNS . SENT 3 LS . SENT Strategically RB similar JJ businesses NNS can MD be VB managed VVN using VVG a DT dominant JJ general JJ management NN logic NN . SENT 4 LS . SENT The DT top JJ management NN group's NNS ability NN to TO manage VV is VBZ limited VVN by IN the DT logic NN s NN to TO which WDT they PP are VBP accustomed VVN . SENT The DT implications NNS of IN including VVG the DT concept NN of IN dominant JJ general JJ management NN logic NN in IN researching VVG diversification NN and CC performance NN involve VVP the DT way NN the DT logic NN limits VVZ diversity NN and CC the DT manner NN in IN which WDT it PP affects VVZ managers NNS ability NN to TO react VV . SENT The DT process NN of IN changing VVG or CC adding VVG dominant JJ logic NN is VBZ discussed VVN briefly RB . SENT Fahey NP , , Liam NP . SENT Christensen NP , , H NP . SENT Kurt NP 1986 CD Evaluating VVG the DT Research NP on IN Strategy NP Content NN . SENT Journal NP of IN Management NP , , 12 CD 2 CD . SENT 167 CD 183 CD . SENT Strategy NN content NN research NN examines VVZ the DT content NN of IN decisions NNS regarding VVG the DT goals NNS , , scope NN , , or CC competitive JJ strategies NNS of IN corporations NNS . SENT The DT major JJ strategy NN content NN research NN streams NNS are VBP . SENT 1 LS . SENT goals NNS and CC performance NN , , 2 CD . SENT diversification NN , , 3 CD . SENT strategic JJ groups NNS , , 4 CD . SENT market NN share NN and CC profitability NN , , 5 CD . SENT taxonomic JJ approaches NNS , , and CC 6 CD . SENT stages NNS of IN industry NN evolution NN . SENT Each DT of IN these DT is VBZ discussed VVN in IN terms NNS of IN the DT research NN questions NNS asked VVD , , the DT key JJ findings NNS , , and CC the DT concerns NNS arising VVG from IN the DT research NN . SENT Finally RB , , 4 CD implications NNS for IN managers NNS are VBP given VVN . SENT 1 LS . SENT Haphazard JJ diversification NN is VBZ not RB likely JJ to TO generate VV above IN average JJ long JJ term NN earnings NNS . SENT 2 LS . SENT Performance NN is VBZ greatly RB influenced VVN by IN how WRB a DT firm NN positions VVZ itself PP within IN a DT given VVN industry NN . SENT 3 LS . SENT Managers NNS should MD consider VV the DT benefits NNS , , costs NNS , , and CC opportunities NNS before IN seeking VVG to TO increase VV market NN share NN . SENT 4 LS . SENT Business NN leaders NNS should MD anticipate VV stage NN changes NNS and CC modify VV strategy NN accordingly RB . SENT McGee NP , , John NP . SENT Thomas NP , , Howard NP 1986 CD Strategic NP Groups NNS . SENT Theory NN , , Research NP and CC Taxonomy NN . SENT Strategic NP Management NP Journal NP , , 7 CD 2 CD . SENT 141 CD 160 CD . SENT Since IN most JJS large JJ firms NNS are VBP multiproduct NN , , sell VV in IN more JJR than IN one CD market NN , , and CC have VHP grown VVN by IN diversification NN , , it PP is VBZ very RB difficult JJ to TO determine VV where WRB the DT boundaries NNS of IN the DT industry NN should MD be VB drawn VVN . SENT This DT issue NN is VBZ reexamined VVN by IN using VVG a DT supply NN side NN concept NN of IN classification NN that WDT seeks VVZ to TO identify VV groupings NNS or CC structures NNS within IN industries NNS but CC is VBZ based VVN on IN the DT observed JJ similarity NN of IN behavior NN of IN firms NNS . SENT These DT groups NNS are VBP called VVN strategic JJ groups NNS . SENT A DT comprehensive JJ literature NN review NN of IN recent JJ studies NNS led VVN to TO several JJ conclusions NNS . SENT Certain JJ theoretical JJ concepts NNS such JJ as IN mobility NN barriers NNS , , isolating VVG mechanisms NNS , , and CC controllable JJ variables NNS provide VVP much RB firmer JJR bases NNS for IN identifying VVG strategic JJ groups NNS within IN industries NNS than IN does VVZ using VVG substitute NN elements NNS to TO determine VV a DT firm's JJ strategic JJ direction NN . SENT Therefore RB , , taxonomies NNS for IN understanding VVG the DT nature NN of IN strategic JJ group NN formulation NN can MD be VB developed VVN . SENT Montgomery NP , , Cynthia NP A NP . SENT Wilson NP , , Vicki NP A NP . SENT 1986 CD Mergers NP That DT Last JJ . SENT A DT Predictable JJ Pattern NN . SENT Strategic NP Management NP Journal NP , , 7 CD 1 CD . SENT 91 CD 96 CD . SENT The DT mergers NNS of IN the DT 1960 CD s PP have VHP recently RB come VVN to TO be VB seen VVN as IN the DT divestitures NNS of IN the DT 1970 CD s PP and CC 1980 CD s PP . SENT To TO examine VV this DT view NN , , the DT current JJ ownership NN of IN 434 CD large JJ acquisitions NNS made VVN by IN publicly RB traded VVN US NP firms NNS in IN 1967 CD 1969 CD are VBP analyzed VVN . SENT Results NNS show VVP that IN the DT majority NN are VBP still RB held VVN by IN the DT acquiring VVG firms NNS . SENT Previous JJ diversification NN and CC merger NN research NN appears VVZ to TO capture VV some DT of IN the DT positive JJ wealth NN effects NNS of IN relatedness NN , , but CC results NNS of IN this DT study NN show NN that IN unrelated JJ acquisitions NNS were VBD resold VVN at IN a DT moderately RB higher JJR , , but CC not RB significantly RB different JJ , , rate NN than IN related JJ acquisitions NNS . SENT Both DT unrelated JJ and CC related JJ acquisitions NNS may MD possibly RB be VB used VVN as IN strategic JJ planning NN tools NNS , , with IN some DT unrelated JJ firms NNS representing VVG the DT acquiring VVG firm's NNS attempt VVP to TO refocus VV defensively RB . SENT However RB , , the DT small JJ difference NN in IN rate NN of IN resale NN also RB suggests VVZ that IN related JJ acquisitions NNS may MD be VB less RBR successful JJ than IN previously RB thought VVN . SENT While IN potential JJ gains NNS may MD be VB greater JJR , , the DT efforts NNS needed VVN to TO realize VV them PP are VBP also RB likely JJ to TO be VB greater JJR . SENT Reed NP , , Richard NP . SENT Luffman NP , , George NP A NP . SENT 1986 CD Diversification NN . SENT The DT Growing VVG Confusion NN . SENT Strategic NP Management NP Journal NP , , 7 CD 1 CD . SENT 29 CD 35 CD . SENT Simplifications NNS and CC generalizations NNS have VHP caused VVN misguided JJ interpretation NN of IN the DT terminology NN used VVN to TO describe VV the DT various JJ forms NNS of IN diversification NN . SENT Strategic JJ fashion NN has VHZ dictated VVN how WRB the DT strategy NN should MD be VB adopted VVN , , to TO what WP extent NN , , and CC in IN what WP form NN , , losing VVG sight NN of IN the DT fundamental JJ principles NNS involved VVN . SENT A DT strategy NN should MD be VB selected VVN based VVN on IN clear JJ identification NN of IN its PP$ benefits NNS , , which WDT should MD be VB used VVN to TO help VV solve VV specific JJ problems NNS . SENT This DT requires VVZ less JJR emphasis NN on IN shorthand NN methods NNS of IN describing VVG diversification NN and CC more JJR emphasis NN on IN the DT potential NN of IN the DT strategy NN and CC the DT circumstances NNS under IN which WDT benefits NNS can MD be VB of IN meaningful JJ value NN . SENT Research NN and CC reporting VVG of IN the DT facts NNS surrounding VVG diversifications NNS within IN industries NNS require VVP integrity NN . SENT there EX is VBZ also RB a DT need NN for IN self NN honesty NN and CC realization NN of IN the DT lack NN of IN instant JJ solutions NNS in IN the DT form NN of IN fashionable JJ actions NNS . SENT Since IN most JJS problems NNS are VBP specific JJ , , they PP are VBP only RB relevant JJ to TO individual JJ companies NNS and CC , , therefore RB , , require VVP individual JJ solutions NNS . SENT Silhan NP , , Peter NP A NP . SENT Thomas NP , , Howard NP 1986 CD Using VVG Simulated JJ Mergers NPS to TO Evaluate VV Corporate JJ Diversification NN Strategies NNS . SENT Strategic NP Management NP Journal NP , , 7 CD 6 CD . SENT 523 CD 534 CD . SENT It PP is VBZ proposed VVN that IN simulated JJ mergers NNS of IN actual JJ firms NNS can MD be VB useful JJ in IN the DT evaluation NN of IN the DT effects NNS of IN diversification NN on IN corporate JJ performance NN . SENT Risk NN and CC return NN were VBD examined VVN for IN 60 CD autonomous JJ firms NNS that WDT were VBD aggregated VVN to TO form VV 9 CD sets NNS of IN conglomerates NNS . SENT Mean JJ absolute JJ percentage NN error NN MAPE NN and CC return NN on IN equity NN ROE NNS measured VVD risk NN and CC return NN , , with IN MAPEs NP and CC ROEs NNS evaluated VVN for IN a DT 3 CD year NN holding NN period NN . SENT The DT results NNS supported VVD the DT proposition NN that IN conglomeration NN can MD lead VV to TO increased JJ market NN value NN if IN risk NN can MD be VB reduced VVN while IN return NN is VBZ held VVN at IN the DT same JJ level NN . SENT Among IN the DT implications NNS of IN the DT study's JJ results NNS are VBP . SENT 1 LS . SENT Under IN conditions NNS of IN no DT synergy NN , , conglomeration NN can MD be VB an DT effective JJ cost NN reduction NN strategy NN . SENT 2 LS . SENT Conglomerates NNS with IN more JJR segments NNS apparently RB improve VV their PP$ risk NN return NN performance NN . SENT 3 LS . SENT Mergers NNS formed VVN from IN large JJ units NNS have VHP better JJR performance NN than IN those DT formed VVN from IN small JJ units NNS . SENT Bettis NP , , Richard NP A NP . SENT . SENT Mahajan NP , , Vijay NP 1985 CD Risk NN Return NN Performance NN of IN Diversified NP Firms NPS . SENT Management NP Science NP , , 31 CD 7 CD . SENT 785 CD 799 CD . SENT Trade NN offs NNS involving VVG risk NN and CC expected VVN profit NN in IN corporate JJ financial JJ performance NN are VBP examined VVN at IN the DT level NN of IN accounting NN profits NNS for IN 80 CD large JJ , , related JJ and CC unrelated JJ diversified JJ firms NNS . SENT The DT sample NN used VVN by IN Bettis NP and CC Hall NP 1982 CD for IN the DT years NNS 1973 CD 1977 CD is VBZ reanalyzed VVN . SENT The DT return NN measure NN is VBZ a DT 5 CD year NN average NN of IN the DT return NN on IN assets NNS ROA NN . SENT risk NN is VBZ measured VVN by IN the DT standard JJ deviation NN of IN ROA NN across IN the DT same JJ period NN . SENT Results NNS indicate VVP that IN , , on IN average NN , , related VVN diversified JJ firms NNS outperform VVP unrelated JJ ones NNS , , but CC this DT is VBZ no DT guarantee NN of IN a DT favorable JJ risk NN return NN performance NN . SENT In IN fact NN , , different JJ diversification NN strategies NNS may MD result VV in IN a DT similar JJ risk NN return NN performance NN . SENT However RB , , it PP is VBZ extremely RB difficult JJ to TO achieve VV favorable JJ risk NN return NN performance NN with IN unrelated JJ diversification NN . SENT Successfully RB diversified JJ firms NNS differ VVP from IN others NNS on IN some DT managerial JJ dimensions NNS , , which WDT include VVP high JJ levels NNS of IN research NN and CC development NN and CC advertising NN expenditures NNS . SENT Palepu NP , , Krishna NP 1985 CD Diversification NN Strategy NN , , Profit NP Performance NP and CC the DT Entropy NN Measure NN . SENT Strategic NP Management NP Journal NP . SENT 6 CD 3 CD . SENT 239 CD 255 CD . SENT The DT diversification NN performance NN relationship NN is VBZ reexamined VVN using VVG a DT diversification NN index NN that WDT distinguishes VVZ between IN related JJ and CC unrelated JJ diversification NN . SENT The DT Jacquemin NP Berry NP 1979 CD entropy NN measure NN of IN diversification NN and CC the DT line NN of IN business NN data NNS are VBP employed VVN . SENT The DT statistical JJ analysis NN is VBZ based VVN on IN 30 CD firms NNS from IN the DT food NN products NNS industry NN group NN , , and CC data NNS were VBD analyzed VVN by IN the DT t NN test NN , , the DT media NNS test NN , , and CC the DT Mann NP Whitney NP U NP test NN . SENT The DT results NNS and CC analysis NN show NN that IN . SENT 1 LS . SENT the DT notion NN that IN high JJ total JJ diversification NN is VBZ cross NN sectionally RB associated VVN with IN higher JJR profitability NN is VBZ not RB supported VVN by IN the DT evidence NN , , 2 CD . SENT the DT evidence NN is VBZ not RB sufficient JJ to TO conclude VV that IN the DT profitability NN of IN firms NNS with IN high JJ related JJ diversification NN is VBZ greater JJR than IN the DT profitability NN of IN firms NNS with IN high JJ unrelated JJ diversification NN , , and CC 3 CD . SENT although IN failing VVG to TO achieve VV significance NN at IN the DT conventional JJ level NN , , the DT results NNS are VBP generally RB in IN the DT direction NN expected VVN by IN the DT hypothesis NN that WDT , , if IN related VVN diversification NN leads VVZ to TO superior JJ growth NN in IN profitability NN , , it PP should MD eventually RB lead VV to TO a DT higher JJR profitability NN level NN itself PP . SENT Montgomery NP , , Cynthia NP A NP . SENT 1985 CD Product NN Market NN Diversification NN and CC Market NP Power NP Academy NP of IN Management NP Journal NP , , 28 CD 4 CD . SENT 789 CD 798 CD . SENT An DT examination NN is VBZ made VVN of IN the DT relationships NNS among IN diversification NN , , market NN structure NN , , and CC firm NN performance NN . SENT It PP is VBZ contended VVN that IN the DT traditional JJ economic JJ theory NN of IN market NN power NN overemphasizes VVZ collusive JJ or CC general JJ market NN power NN and CC underemphasizes VVZ the DT role NN of IN specific JJ skills NNS and CC specific JJ market NN power NN that WDT give VVP companies NNS advantages NNS in IN individual JJ market NN settings NNS . SENT Univariate JJ differences NNS between IN highly RB diversified JJ and CC less RBR diversified JJ companies NNS are VBP examined VVN with IN t NN tests NNS , , the DT sample NN including VVG 128 CD Fortune NP 500 CD companies NNS ranging VVG in IN level NN of IN diversification NN from IN single JJ line NN businesses NNS to TO unrelated JJ diversifiers NNS . SENT It PP is VBZ shown VVN that IN , , contrary JJ to TO the DT widely RB held VVN view NN that IN diversified JJ firms NNS wield VV unfair JJ market NN advantages NNS , , highly RB diversified JJ firms NNS do VVP not RB have VH strong JJ market NN positions NNS . SENT On IN average NN , , they PP compete VVP in IN less JJR attractive JJ markets NNS than IN companies NNS with IN relatively RB low JJ levels NNS of IN diversification NN . SENT However RB , , diversification NN may MD have VH advantages NNS that WDT come VVP from IN cost NN efficiencies NNS rather RB than IN market NN power NN . SENT Bettis NP , , Richard NP A NP . SENT . SENT Hall NP , , William NP K NP . SENT 1982 CD Diversification NN Strategy NN , , Accounting NP Determined VVD Risk NN , , and CC Accounting NP Determined VVD Return NN . SENT Academy NP of IN Management NP Journal NP , , 25 CD 2 CD . SENT 254 CD 264 CD . SENT This DT study NN examines VVZ the DT validity NN of IN some DT conclusions NNS previously RB drawn VVN from IN research NN by IN Rumelt NP 1974 CD , , 1977 CD on IN related JJ and CC unrelated JJ diversification NN strategies NNS , , in IN view NN of IN risk NN considerations NNS . SENT Accounting NN measures NNS of IN risk NN and CC return NN have VHP been VBN used VVN , , rather RB than IN market NN measures NNS . SENT The DT 4 CD hypotheses NNS studied VVN are VBP . SENT 1 LS . SENT Related JJ diversification NN strategies NNS are VBP more RBR successful JJ than IN unrelated JJ diversification NN strategies NNS . SENT related JJ constrained VVN diversification NN strategies NNS outperform VVP related JJ linked VVN diversification NN strategies NNS . SENT 2 LS . SENT Unrelated JJ diversification NN strategies NNS have VHP less JJR accounting NN risk NN than IN related JJ diversification NN strategies NNS . SENT 3 LS . SENT Accounting NN determined VVD return NN will MD be VB strongly RB correlated VVN with IN accounting VVG determined VVN risk NN in IN firms NNS following VVG unrelated JJ diversification NN strategies NNS . SENT 4 LS . SENT Accounting NN determined VVD return NN will MD be VB minimally RB correlated VVN with IN accounting VVG determined VVN risk NN in IN organizations NNS pursuing VVG related JJ diversification NN . SENT The DT results NNS of IN the DT study NN indicate VVP that IN the DT accuracy NN of IN the DT hypotheses NNS may MD be VB limited VVN to TO the DT pharmaceuticals NNS industry NN . SENT Evidence NN is VBZ provided VVN that IN related JJ firms NNS do VVP not RB outperform VV unrelated JJ firms NNS and CC that IN unrelated JJ firms NNS do VVP not RB have VH superior JJ risk NN pooling VVG traits NNS . SENT The DT results NNS also RB suggest VVP that IN the DT trade NN off RP between IN accounting VVG determined VVN risk NN and CC return NN varies VVZ among IN unrelated JJ , , related JJ constrained VVN , , and CC related JJ linked VVN firms NNS . SENT Montgomery NP , , Cynthia NP A NP . SENT 1982 CD The DT Measurement NN of IN Firm NN Diversification NN . SENT Some DT New NP Empirical JJ Evidence NN . SENT Academy NP of IN Management NP Journal NP , , 25 CD 2 CD . SENT 299 CD 307 CD . SENT In IN this DT research NN , , 2 CD approaches NNS to TO the DT measurement NN of IN firm NN diversification NN are VBP compared VVN . SENT Continuous JJ Standard NP Industrial NP Classification NN SIC RB based VVN product NN count NN measures NNS are VBP structured VVN on IN the DT SIC JJ system NN developed VVN by IN the DT federal JJ government NN for IN classifying VVG all DT types NNS of IN economic JJ activity NN . SENT The DT system NN is VBZ based VVN on IN establishment NN classifications NNS which WDT classify VV each DT plant NN of IN a DT firm NN according VVG to TO its PP$ primary JJ activity NN . SENT The DT categorical JJ measure NN of IN diversification NN was VBD developed VVN after IN the DT weaknesses NNS of IN the DT SIC JJ system NN became VVD apparent JJ . SENT its PP$ focus NN is VBZ on IN the DT individual JJ firm NN and CC its PP$ pattern NN of IN diversification NN . SENT What WP is VBZ diversification NN for IN the DT economy NN as IN a DT whole NN is VBZ not RB necessarily RB descriptive JJ of IN diversification NN in IN any DT one CD firm NN . SENT The DT results NNS indicate VVP a DT high JJ degree NN of IN correspondence NN between IN the DT 2 CD measures NNS . SENT The DT problems NNS of IN validity NN and CC reliability NN do VVP not RB appear VV to TO be VB as RB serious JJ as RB has VHZ been VBN suggested VVN . SENT Although IN one CD measure NN may MD be VB more RBR appropriate JJ than IN the DT other JJ in IN a DT given VVN situation NN , , neither CC is VBZ plainly RB superior JJ to TO the DT other JJ for IN all DT uses NNS . SENT Rumelt NP , , Richard NP P NN . SENT 1982 CD Diversification NN Strategy NN and CC Profitability NN . SENT Strategic NP Management NP Journal NP , , 3 CD 4 CD . SENT 359 CD 369 CD . SENT Between IN 1949 CD and CC 1974 CD , , the DT proportion NN of IN Fortune NP 500 CD firms NNS that WDT were VBD substantially RB diversified VVN more JJR than IN doubled VVN , , rising VVG to TO 63 CD . SENT Rumelt NP 1974 CD showed VVD that IN firms NNS that IN diversified JJ into IN areas NNS that WDT drew VVD on IN a DT common JJ core NN skill NN or CC resource NN were VBD more RBR profitable JJ than IN those DT that WDT were VBD vertically RB integrated VVN or CC those DT that RB diversified JJ into IN unrelated JJ businesses NNS . SENT This DT earlier JJR study NN is VBZ extended VVN with IN a DT larger JJR sample NN and CC with IN more JJR recent JJ data NNS . SENT A DT theory NN of IN product NN diversity NN is VBZ developed VVN based VVN on IN economies NNS of IN scope NN , , idiosyncratic JJ investment NN , , and CC uncertain JJ imitability NN . SENT The DT earlier JJR results NNS are VBP replicated VVN . SENT Tests NNS verify VV that IN an DT association NN remains VVZ once RB the DT effects NNS of IN varying VVG industry NN profitability NN are VBP removed VVN . SENT The DT tests NNS also RB permit VVP discrimination NN between IN the DT effects NNS of IN industry NN and CC diversification NN strategy NN on IN profitability NN . SENT Bettis NP , , Richard NP A NP . SENT 1981 CD Performance NP Differences NNS in IN Related JJ and CC Unrelated JJ Diversified NP Firms NNS . SENT Strategic NP Management NP Journal NP , , 2 CD 4 CD . SENT 379 CD 393 CD . SENT In IN 1974 CD , , Rumelt NP studied VVD the DT relationships NNS among IN diversification NN strategy NN , , organizational JJ structure NN , , and CC economic JJ performance NN . SENT In IN 1979 CD , , Montgomery NP examined VVD performance NN differences NNS in IN diversified JJ firms NNS by IN using VVG the DT market NN structure NN variables NNS of IN industrial JJ organization NN economics NNS . SENT With IN these DT 2 CD studies NNS as IN a DT backdrop NN , , this DT study NN examined VVD performance NN differences NNS between IN related JJ and CC unrelated JJ diversified JJ firms NNS . SENT As IN a DT dependent JJ return NN variable NN , , return NN on IN assets NNS ROA NN was VBD selected VVN because IN it PP represents VVZ a DT return NN more RBR directly RB under IN the DT control NN of IN management NN . SENT Two CD separate JJ regression NN models NNS were VBD used VVN in IN the DT study NN . SENT Data NNS were VBD taken VVN from IN these DT samples NNS . SENT 1 LS . SENT 31 CD related JJ constrained VVN firms NNS , , 2 LS . SENT 24 CD related JJ linked VVN firms NNS , , and CC 3 CD . SENT 25 CD unrelated JJ firms NNS . SENT It PP was VBD found VVN that IN related JJ diversified JJ firms NNS outperform VVP unrelated JJ diversified JJ firms NNS by IN 1 CD to TO 3 CD percentage NN points NNS . SENT There EX were VBD also RB differences NNS between IN related JJ and CC unrelated JJ firms NNS in IN the DT following VVG 3 CD areas NNS . SENT 1 LS . SENT advertising NN , , 2 CD . SENT capital NN intensity NN , , and CC 3 CD . SENT research NN and CC development NN . SENT The DT results NNS suggest VVP , , where WRB barriers NNS to TO entry NN exist VV , , there EX is VBZ a DT degree NN of IN monopoly NN power NN , , since IN the DT firm NN can MD price VV above IN the DT competitive JJ level NN . SENT The DT higher JJR the DT barriers NNS , , the DT larger JJR the DT profits NNS for IN the DT industry NN . SENT Christensen NP , , H NP . SENT Kurt NP . SENT Montgomery NP , , Cynthia NP A NP . SENT 1981 CD Corporate JJ Economic NP Performance NP . SENT Diversification NN Strategy NN Versus CC Market NN Structure NN . SENT Strategic NP Management NP Journal NP , , 2 CD 4 CD . SENT 327 CD 343 CD . SENT A DT sample NN , , which WDT included VVD 128 CD businesses NNS from IN Rumelt's NP 1974 CD study NN , , was VBD updated VVN and CC used VVN to TO examine VV corporate JJ economic JJ performance NN using VVG 2 CD variables NNS . SENT 1 LS . SENT diversification NN strategy NN , , and CC 2 CD . SENT market NN structure NN . SENT Performance NN differences NNS were VBD found VVN to TO exist VV among IN some DT , , but CC not RB all RB , , of IN Rumelt's NP categories NNS . SENT The DT differences NNS appeared VVD to TO be VB associated VVN with IN characteristics NNS of IN the DT markets NNS in IN which WDT the DT firms NNS exist VVP . SENT Two CD separate JJ profiles NNS emerge VVP from IN the DT study NN . SENT 1 LS . SENT related JJ constrained VVN firms NNS , , and CC 2 CD . SENT unrelated JJ portfolio NN diversifiers NNS . SENT It PP is VBZ argued VVN the DT firms NNS in IN markets NNS which WDT constrain VV their PP$ growth NN or CC profitability NN are VBP the DT best JJS candidates NNS for IN diversification NN . SENT However RB , , businesses NNS in IN low JJ opportunity NN markets NNS are VBP more RBR likely JJ to TO pursue VV unrelated JJ diversification NN . SENT The DT study NN suggests VVZ 2 CD implications NNS . SENT 1 LS . SENT High JJ earnings NNS are VBP not RB assured VVN by IN constrained VVN diversification NN . SENT 2 LS . SENT Inattention NN to TO market NN structure NN in IN entry NN decisions NNS for IN unrelated JJ portfolio NN firms NNS can MD result VV in IN poor JJ performance NN . SENT Moreover RB , , unrelated JJ portfolio NN firms NNS may MD lack NN the DT needed VVN skills NNS and CC resources NNS to TO survive VV in IN a DT faster RBR growing JJ and CC more RBR concentrated JJ market NN . SENT