Within-industry diversification and firm performancean S-shaped hypothesis

• 成果类型: Article
• 署名作者: Hashai, Niron
• 署名单位: Hebrew University of Jerusalem
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2290
• 发表日期: 2015
• 页码: 1378-1400
• 关键词: within-industry diversification; adjustment costs; Coordination costs; firm performance; high technology SMEs

摘要

This study shows that the interplay between adjustment costs, coordination costs and within-industry diversification benefits, results in an S-shaped relationship between within-industry diversification and firm performance. At low levels of within-industry diversification, coordination costs are negligible but adjustment costs are higher than the synergy benefits of a limited product scope, hence leading to negative performance outcomes. At moderate levels of within-industry diversification synergies between related product categories substantially increase and outweigh the rise in adjustment and coordination costs, resulting in positive performance outcomes. Yet, extensive within-industry diversification gives rise to considerable coordination costs, which, coupled with adjustment costs, outweigh synergy effects and hamper performance. The study further shows that a greater change rate of within-industry diversification results in negative performance outcomes. Copyright (c) 2014 John Wiley & Sons, Ltd.