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

    Authors

    J. S. Harrison; E. H. Hall;R. Nargundkar

    Comments

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    Abbreviated Journal Title

    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.

    Journal 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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