Title

Manufacturing-Based Relatedness, Synergy, And Coordination

Keywords

Competitive advantage; Coordination; Corporate strategy; Manufacturing; Synergy

Abstract

This paper explores the basic question of whether manufacturing-based relatedness between business units within a multibusiness firm 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 © 1999 John Wiley & Sons, Ltd.

Publication Date

1-1-1999

Publication Title

Strategic Management Journal

Volume

20

Issue

2

Number of Pages

129-145

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1002/(sici)1097-0266(199902)20:2<129::aid-smj16>3.0.co;2-f

Socpus ID

0001138995 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0001138995

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