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Strategic management researchers have measured business economic performance (BEP) through either perceptual assessments of senior executives or secondary data sources, but few explicitly evaluate the degree of convergence across methods. In an effort to examine method convergence, we collected data on three dimensions-sales growth, net income growth, and profitability (ROI) using both methods. Although convergent and discriminant validity were achieved using Campbell and Fiske's Multi Trait, Multi Method (MTMM) and Confiratory Factor Analysis (CFA), the approaches yielded different insights. The advantages of CFA over MTMM is demonstrated with implications for strategy research.

Diversification has emerged as a central topic of research in strategic management. Although this topic has been widely and intensively studied by scholars from other areas such as industrial organization economics, financial economics, organization theory, and marketing, a synthesis of these diverse streams of research is lacking. This paper attempts such a synthesis with a view to fostering further strategic management research in this area by taking a multi‐disciplinary perspective on diversification. A wide‐ranging search of the literature led to the development of an overarching research framework that facilitates the classification of a vast body of literature. Proceeding from the framework, a critique of the literature is performed with a particular emphasis on studies by strategic management researchers. Five key conceptual and methodological problems are identified and discussed. Suggestions are offered for future research on diversification.

The nature of the multivariate relationship between six characteristics of planning systems and three different conceptualizations of planning effectiveness is examined using canonical correlation analysis. The analysis indicates that the organizational context of planning-captured here by two key characteristics-resistance t o planning and resources provided for planning-is the dominant impact on planning system effectiveness, broadly construed. While individual design elements of the planning system such as use of techniques and external orientation do influence effectiveness, the contextual dimensions appear to be overriding. Implications for further research on planning systems and directions for future extensions of this study are discussed.