Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy

Ahuja, Gautam; Novelli, Elena

doi:10.5465/annals.2014.0079

Cited by 91 publications

(78 citation statements)

References 287 publications

(308 reference statements)

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“…). Information technology also enables the creation of ‘virtual corporations’ (Ahuja and Novelli , p. 381). Inter‐firm R&D networks and cooperation (Brusoni et al .…”

Section: Discussion and Future Researchmentioning

confidence: 99%

Technological Diversification: A Systematic Review of Antecedents, Outcomes and Moderating Effects

Ceipek

Hautz

Mayer

et al. 2019

Int J Management Reviews

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Technological diversification has been linked to a wide range of phenomena, including financial performance, innovation, product diversification and inter‐organizational relationships. This is the first systematic review of this literature and provides an overview of its historical development and conceptual foundations. It finds that the role of contingency factors impacting the positive relationship between technological diversification and financial performance needs further exploration. Also, it finds that the research on the links between technological diversification and inter‐organizational relationships requires consolidation. This paper suggests three avenues for further research. First, it sets out an agenda for identifying the antecedents of technological diversification. Second, it identifies contextual factors that could shape the relationship between technological diversification and performance. Third, it argues that technological diversification research must engage with contemporary technological and organizational developments such as digital organizations, open boundaries and networks.

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“…). Information technology also enables the creation of ‘virtual corporations’ (Ahuja and Novelli , p. 381). Inter‐firm R&D networks and cooperation (Brusoni et al .…”

Section: Discussion and Future Researchmentioning

confidence: 99%

Technological Diversification: A Systematic Review of Antecedents, Outcomes and Moderating Effects

Ceipek

Hautz

Mayer

et al. 2019

Int J Management Reviews

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Section: Discussionmentioning

confidence: 99%

“…Although we have focused on the relationship between family management and performance, our findings help shed some light on concerns in the literature on diversification and performance. As a recent review paper (Ahuja & Novelli, 2017) points out, the relationship between diversification and performance is contingent, not univocal. Conceptually, the dilemma arises out of tensions between the capabilities of family managers as underpinned by their managerial and social capital and the interests and the motivational factors highlighted by agency and stewardship theories (Miller et al, 2013).…”

Section: Discussionmentioning

confidence: 99%

International and product diversification: Which strategy suits family managers?

Stadler

Mayer

Hautz

et al. 2018

Global Strategy Journal

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Research Summary: This article explores the impact of family and professional managers on performance and how this relationship is affected by international and product diversification. Using a dataset of 262 German firms from 2000 to 2009, we find that an increasing proportion of family managers on the management board is associated with higher performance. This relationship is negatively moderated by higher levels of international diversification but reinforced by increased product diversification due to differences in the human and social capital between family and professional managers. Firms with a significant presence of family members on the top management team (TMT) face a choice of either adopting a corporate strategy that runs counter to “globalfocusing” or adjusting the balance of family and professional managers in the TMT. Managerial Summary: Deciding the extent of family involvement on the executive team is a key strategic decision. While our research supports the general proposition that family managers will enhance performance, we show they do not have the same positive impact in all situations. More precisely, we show that family managers are more suited to lead diversification than internationalization. If a family firm wants to go international, it is sensible to increase the proportion of professional managers on the executive team. Diversifying into new product markets, however, does not require outside expertise commonly associated with professional managers.

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“…For elaboration purposes we note that the literature on co-deployment has identified multiple sources of synergy such as operational, vertical integration, competitive and financial synergies as well as the costs that accompany such synergies (e.g. Ahuja and Novelli 2015). Notable synergy related costs include coordination costs required to share resources across businesses (e.g.…”

Section: Competing Business Models and Resource Deploymentmentioning

confidence: 99%

“…However, it is likely that even scale-free resources, such as technology and brands, might imply additional types of co-deployment costs when they are used in additional applications (e.g. Ahuja and Novelli, 2015). First, they might imply adaptation costs to tailor them to the second model (e.g.…”

Section: Choosing the Straddle Strategymentioning

confidence: 99%

Incumbent Responses to an Entrant with a New Business Model: Resource Co-Deployment and Resource Re-Deployment Strategies

Ahuja¹,

Novelli²

2016

Advances in Strategic Management

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This is the accepted version of the paper.This version of the publication may differ from the final published version. This article is © Emerald Group Publishing and permission has been granted for this version to appear here http://openaccess.city.ac.uk. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited. Permanent repository link 2 ABSTRACTThe constructs of re-deployment and co-deployment have been central to discussions of scope economies in diversified firms. We argue however that these constructs are also significant in the context of single business firms. Increasingly, changes in technology and demand preferences have provided opportunities for entrants to attack incumbents with a different business model, one that may neutralize the incumbent's advantage for at least some set of customers (e.g. Netflix versus Blockbuster). In such a context incumbents often respond by modifying their business model. We note that several of the business model-altering responses of the incumbent can be characterized in terms of co-deployment and re-deployment benefits and costs, where co-deployment benefits/cost apply to the scope economies/diseconomies in running multiple business-models within the same firm and re-deployment benefits/costs apply to the implications of moving assets from one business model to another. We then examine the set of strategic choices faced by the incumbent in competing with an entrant with a different business model. We identify five set of factors that are likely to influence the decision to choose between these alternatives -uncertainty spawned by the new business model, market segment targeted by the new model, the within-business-across-business-model co-deployment and re-deployment benefits and costs, the across-business co-deployment and re-deployment benefits and costs, and the incumbent's prior performance history. Although some of these choices have seen some work, most remain relatively underexplored in the strategy literature. We highlight the potential for research in this area with a set of propositions that identify key conditions that should hold true for a particular strategic choice to be picked by an incumbent.This article is

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Redirecting Research Efforts on the Diversification–Performance Linkage: The Search for Synergy

Cited by 91 publications

References 287 publications

Technological Diversification: A Systematic Review of Antecedents, Outcomes and Moderating Effects

Technological Diversification: A Systematic Review of Antecedents, Outcomes and Moderating Effects

International and product diversification: Which strategy suits family managers?

Incumbent Responses to an Entrant with a New Business Model: Resource Co-Deployment and Resource Re-Deployment Strategies

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