Abstract
Abstract In this paper we theoretically and empirically investigate the idea that firms diversify in part to utilize productive resources which are surplus to current operations. Knowledge of these resources allows us to make predictions about the direction of a firm's expansion. In particular, we suggest that excess physical resources, most knowledge‐based resources, and external financial resources are associated with more related diversification, while internal financial resources are associated with more unrelated diversification.
Keywords
Diversification (marketing strategy)BusinessIndustrial organizationEconomicsMicroeconomicsMarketing
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Publication Info
- Year
- 1991
- Type
- article
- Volume
- 12
- Issue
- 1
- Pages
- 33-48
- Citations
- 1049
- Access
- Closed
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Cite This
Sayan Chatterjee,
Birger Wernerfelt
(1991).
The link between resources and type of diversification: Theory and evidence.
Strategic Management Journal
, 12
(1)
, 33-48.
https://doi.org/10.1002/smj.4250120104
Identifiers
- DOI
- 10.1002/smj.4250120104