Diversification as an adaptive learning process: an empirical study of general-purpose and market-specific technological know-how in new market entry
Dominika Kinga Randle,
Gary Paul Pisano
Abstract:An enduring trait of modern corporations is their propensity to diversify into multiple lines of business. Penrosian theories conceptualize diversification as a strategy to exploit a firm’s fungible, yet “untradeable,” resources and point to the redeployment of technological know-how as an important driver thereof. However, less understood are the characteristics of technological assets that underlie firms’ diversification decisions and the impact that diversification has on firms’ subsequent development of te… Show more
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