Corporate economic performance: Diversification strategy versus market structure

✍ Scribed by H. Kurt Christensen; Cynthia A. Montgomery

• Book ID: 112207395
• Publisher: John Wiley and Sons
• Year: 1981
• Tongue: English
• Weight: 887 KB
• Volume: 2
• Category: Article
• ISSN: 0143-2095
• DOI: 10.1002/smj.4250020402

✦ Synopsis

Abstract

This paper incorporates both diversification strategy and market structure variables in a study of corporate economic performance. A subsample of 128 firms from Rumelt's 1974 study was updated and utilized to investigate the possibility that market structure variables might moderate or confound the diversification/performance relationship he reported. Study results indicate that performance differences could be demonstrated for some of Rumelt's categories, but, across the range of categories, a hypothesis of performance differences was rejected. As expected, categories associated with distinctly high or distinctly low economic performance were also associated with significant differences in a series of market structure variables.