aThe decision to diversify lies at the core of corporate strategy and is one of the most important decisions for top management. Matthias Knecht introduces a new perspective on corporate diversification that extends the academic discussion and reveals substantial new insights with regards to one of the most pressing questions in strategic management: what makes a diversification strategy successful? The author introduces the dynamism of industries as the dominant force in the firmas environment that influences the organization on all levels. Due to strategic, organizational, and managerial similarities of businesses competing in similar dynamic environments, synergistic benefits and superior economic performance can be realized through the combination of dynamic-related businesses in the corporate portfolio. This study provides a quantitative, multidimensional operationalization of industry dynamism and an in-depth assessment of the dynamism of a wide range of industries. At the core of the study lies the investigation of the performance impact of dynamic-related diversification strategies. The results provide new insights into successful portfolio construction strategies in the face of todayas dynamic environments.The Impact of Dynamic-related Diversification on the Multi-business Firm Matthias Knecht ... inherent hierarchy and Time consuming through manual Relies on the inherent hierarchy and Time consuming through manual Weaknesses consistency of ... argue that cross-business knowledge synergies1335 are an important driver of diversification success.1336 To measure portfolio relatedness, the authorsanbsp;...
|Title||:||Diversification, Industry Dynamism, and Economic Performance|
|Publisher||:||Springer Science & Business Media - 2013-07-01|