Manufacturing-based relatedness, synergy, and coordination

    Authors

    C. H. St John;J. S. Harrison

    Comments

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    Abbreviated Journal Title

    Strateg. Manage. J.

    Keywords

    corporate strategy; manufacturing; synergy; coordination; competitive; advantage; UNRELATED DIVERSIFIED FIRMS; RESOURCE-BASED VIEW; CORPORATE; DIVERSIFICATION; COMPETITIVE ADVANTAGE; STRATEGIC MANAGEMENT; MARKET-STRUCTURE; ENTROPY MEASURE; PERFORMANCE; ACQUISITIONS; PERSPECTIVES; Business; Management

    Abstract

    This paper explores the basic question of whether manufacturing-based relatedness between business units within a multibusiness Jinn serves as a basis for a competitive advantage at the business unit level. We developed a system for describing manufacturing relatedness that combines the study of value chain activities with 4-digit SIC codes, then we assessed presence of manufacturing synergies. We found no evidence that, on average, organizations involved in manufacturing-related businesses are reaping financial benefits from shared resources in manufacturing. However, some firms, through explicit commitment to coordination, do realize performance benefits from such involvement. Copyright (C) 1999 John Wiley & Sons, Ltd.

    Journal Title

    Strategic Management Journal

    Volume

    20

    Issue/Number

    2

    Publication Date

    1-1-1999

    Document Type

    Article

    Language

    English

    First Page

    129

    Last Page

    145

    WOS Identifier

    WOS:000078278700002

    ISSN

    0143-2095

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