Manufacturing-based relatedness, synergy, and coordination
Abbreviated Journal Title
Strateg. Manage. J.
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
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.
Strategic Management Journal
"Manufacturing-based relatedness, synergy, and coordination" (1999). Faculty Bibliography 1990s. 2861.