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Competition, diversification and performance

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posted on 2022-10-05, 19:28 authored by G Ljubownikow, Siah AngSiah Ang
In this paper, we argue that the competitive intensity that a firm faces is related to the diversification strategy it adopts. Specifically, higher competitive intensity is associated with less related diversification and more unrelated diversification, and performance from adopting these diversification strategies improve as competitive intensity rises. We find support for our hypotheses using a sample of manufacturing firms operating in the United Kingdom. The findings provide a deeper explanation of the relationships between the competition that a firm faces and its diversification strategies.

History

Preferred citation

Ljubownikow, G. & Ang, S. H. (2020). Competition, diversification and performance. Journal of Business Research, 112, 81-94. https://doi.org/10.1016/j.jbusres.2020.03.002

Journal title

Journal of Business Research

Volume

112

Publication date

2020-05-01

Pagination

81-94

Publisher

Elsevier BV

Publication status

Published

ISSN

0148-2963

Language

en

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