Strategic Portfolio Management in the Multibusiness Firm

Bettis, Richard A.; Hall, William K.

doi:10.2307/41164940

Cited by 58 publications

(22 citation statements)

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“…The analysis comprised English-and German-language literature and was limited to material published by 2005. An array of studies that analyzed samples already used in other studies was not considered for the meta-analytic integration in order to avoid dependencies (Amit and Livnat 1989;Amit and Livnat 1988b;Amit and Livnat 1988c;Bergh and Lawless 1998;Bettis and Hall 1981;Bettis and Mahanjan 1985;Dubofsky and Varadarajan 1987;Gassenheimer and Keep 1998;Hamilton and Shergill 1993;Hitt and Ireland 1986;Keats 1990;Varadarajan and Ramanujam 1987).…”

Section: Sample and Codingmentioning

confidence: 99%

Product diversification strategy and financial performance: meta-analytic evidence on causality and construct multidimensionality

Bausch

Pils²

2009

Rev Manag Sci

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Section: Sample and Codingmentioning

confidence: 99%

Product diversification strategy and financial performance: meta-analytic evidence on causality and construct multidimensionality

Bausch

Pils²

2009

Rev Manag Sci

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“…While the original BCG Growth–Share Matrix measures and quantifies these two dimensions based on single proxies (market growth versus relative market share), frameworks such as the GE/McKinsey Industry Attractiveness–Business Strength Matrix aggregate multiple parameters (e.g. Bettis and Hall 1981; Grant 2008; Wind and Mahajan 1981). Other corporate portfolio instruments consider different dimensions, but fundamentally resemble the traditional versions or merely apply modifications (Hambrick and MacMillan 1982).…”

Section: Reviewing the Scholarly Assessment Of Cpa Toolsmentioning

confidence: 99%

“…Empirical research investigating the practice of CPA and addressing, for instance, the number and distribution of users and perceived benefits and drawbacks, as well as the corresponding need for improvement, dates back to the late 1970s and early 1980s (e.g. Bettis and Hall 1981; Haspeslagh 1982). Haspeslagh (1982) conducted a series of interviews and a survey among Fortune 1000 companies as well as some selected European corporations regarding the application and limitations of CPA.…”

Section: Evaluating the Validity Of The Criticismmentioning

confidence: 99%

“…Transferring the concept of portfolio analysis from finance theory (e.g. Sharpe 1963) to the real economy, management consultancies such as The Boston Consulting Group (1970), A.D. Little (Wright 1978) and McKinsey (Wind 1974) developed and propagated different product portfolio approaches (Bettis and Hall 1981; Cummings and Daellenbach 2009). They predominantly proposed making use of a graphical representation of the competitive positioning of a corporation's businesses, supporting decision‐making with regard to resource allocation, formulating strategies, setting individual performance targets and valuating the portfolio balance (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…420f.). Such portfolio matrices became very popular and were implemented by many large companies, especially in the 1970s (Bettis and Hall 1981; Haspeslagh 1982; Wind and Mahajan 1981). However, they were also criticized from the beginning.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corporate Portfolio Analysis Tools Revisited: Assessing Causes that May Explain Their Scholarly Disdain

Untiedt

Nippa

Pidun³

2012

Int J Management Reviews

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While prominent corporate portfolio analysis tools such as the BCG Growth–Share Matrix took centre stage in the field of strategic management from the 1960s to the mid‐1980s, this review of the literature shows that they have since then largely disappeared from the academic agenda, despite their practical relevance and widespread application. There may be two independent reasons for this apparent scholarly disdain: corporate portfolio analysis tools (a) may have been recognized as unsuitable owing to inherent flaws or superior alternative concepts or (b) may have become obsolete because of proof that corporate diversification is inferior to market diversification. Thus, this assessment is based on an extensive review of the most relevant academic literature on corporate portfolio analysis tools and on the constitutive diversification–performance link published in leading management journals over the past five decades. The review reveals that research to date has not produced advanced tools based on an objective criticism of the original matrices, nor has corporate diversification – as a precondition for corporate portfolio analysis – proved to be inferior to market‐based co‐ordination mechanisms. Thus, this literature review constitutes a call for further academic research in the field of corporate portfolio analysis tools as well as corporate diversification.

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Strategic control systems and relative r&d investment in large multiproduct firms

Hoskisson

Hitt

1988

Strategic Management Journal

465

232

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This paper hypothesizes that tight financial controls associated with large diversified Mform firms lead to a short-term, low-risk orientation and thereby lower relative investment in R& D. Further, it is hypothesized that increasing levels of diversification require different control systems which have signifcant implications for investing in R&D. Results of the study of 124 major U.S. firms suggest that less diversified U-form firms invest more heavily in R&D than more diversijied M-form firms after controlling for size and industry effects. Additionally, dominant business firms invested more in R& D than either related or unrelated business firms. Finally, the relationship between R&D intensity and market performance was negative for related and unrelated firms. The findings suggest that the market evaluates R&D investment more positively for firms that are organized to seek synergy than for those that are organized to pursue a hedging (or diversification) strategy.

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Strategic Portfolio Management in the Multibusiness Firm

Cited by 58 publications

References 0 publications

Product diversification strategy and financial performance: meta-analytic evidence on causality and construct multidimensionality

Product diversification strategy and financial performance: meta-analytic evidence on causality and construct multidimensionality

Corporate Portfolio Analysis Tools Revisited: Assessing Causes that May Explain Their Scholarly Disdain

Strategic control systems and relative r&d investment in large multiproduct firms

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