Title

Resource-Allocation As An Outcropping Of Strategic Consistency - Performance Implications

Title - Alternative

Acad. Manage. J.

Keywords

Research-And-Development; Risk-Return Performance; Diversification; Strategy; Corporate Diversification; Competitive Advantage; Multiproduct; Firms; Empirical-Evidence; Entropy Measure; Acquisitions; Diversity; Business; Management

Abstract

Similarities in financial resource allocations across the lines of business of diversified firms may indicate corporate strategic consistency, which may lead to superior corporate performance. In support of this argument, the variance in R&D intensity across the lines of business of 96 diversified firms was found to be inversely related to industry-adjusted return on assets. However, no relationship was found for capital intensity. These results provide partial support for the usefulness of a resource-based approach to the study of diversification strategy.

Publication Title

Academy of Management Journal

Volume

36

Issue/Number

5

Publication Date

1-1-1993

Document Type

Article

Language

English

First Page

1026

Last Page

1051

WOS Identifier

WOS:A1993MA36000004

ISSN

0001-4273

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