Two paths to diversification

Dhandapani, Karthik; Upadhyayula, Rajesh Srinivas

doi:10.1108/ijoem-05-2012-0048

Cited by 4 publications

(6 citation statements)

References 68 publications

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“…Related or unrelated diversification strategy helps a business to gain value through informed decision making (March, 1994;Haunschild & Beckman, 1998;Dhandapani & Upadhyayula, 2015). Moreover, the business must be well positioned in the social network; being well positioned suggests active involvement and frequent participation (Ozkan-Canbolat, 2011, 2014).…”

Section: Discussion Of Findingsmentioning

confidence: 99%

“…Diversification strategies can be classified as geographical (regional) (Boschma & Gianelle, 2014;Williamson, 1975, as cited in Hernández-Trasobares & Galve-Górriz, 2015), product, service, domestic and international (Ducassy & Prevot, 2010;Oliveira, 2014). But, basically, diversification can be related or unrelated (Dhandapani & Upadhyayula, 2015).…”

Section: Diversificationmentioning

confidence: 99%

“…These skills include the know-how the firm acquired from previous business and the skills of the employees who have previously done similar work. When a business diversifies into similar business segments, the already acquired skills and resources are easily transferred to the new business because the new segment possesses similar needs characteristics as the focal business (Dhandapani & Upadhyayula, 2015;Tanriverdi & Venkatraman, 2005). In related diversification strategy, a new product is offered which is similar in terms of product nature, manufacturing, consumption, pricing, distribution and promotion (David, 2008, as cited in Khan, 2012).…”

Section: Related Diversificationmentioning

confidence: 99%

“…It is the extent to which a firm's new businesses draw on skills or resources that are not similar. These skills refer mainly to know-how knowledge which is on one hand acquired by experience a firm has in a certain type of business and on the other hand is obtained from the skills of the employees working in the corresponding firm (Tanriverdi & Venkatraman, 2005;Dhandapani & Upadhyayula, 2015). Unrelated diversification is an efficient extension of a firm's boundaries to overcome institutional weaknesses, such as institutional voids (Khanna & Palepu, 1997, 2000.…”

Section: Unrelated Diversificationmentioning

confidence: 99%

“…Thus, owing to the multifarious and multitudinous applications of social network platforms in businesses, it is imperative to examine its role in the diversification of the most stable type of business; family business. Klein and Lien (2009) observed that firms that are well positioned through the traditional media use their excess resources to diversify into related businesses or markets, while Dhandapani and Upadhyayula (2015) found that firms that use social networking platforms employ their excess resources to diversify into unrelated businesses or markets. However, firms in underdeveloped and emerging economies that are characterized by face-to-face contact, resource constraints and high transaction costs adopt unrelated diversification strategy (Khanna & Palepu, 1997;Khanna & Rivkin, 2001).…”

Section: Related Studiesmentioning

confidence: 99%

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The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

Agbim¹,

Igwe

2019

IJIKM

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Aim/Purpose: This study seeks to investigate if participation in business association’s programs through the traditional and new media platforms influences family businesses in South Eastern Nigeria to diversify into similar or different businesses. Background: Before the advances in information and communication technology, businesses were carried on via the traditional media. The application of these advances has changed the way business communications and transactions are conducted globally in both family and non-family businesses. Businesses are adapting to today’s turbulent environment by opening similar or different businesses in the same or different locations that are hinged on the traditional and new media platforms. Nigerians are largely involved in social network through the traditional (face-to-face contact) and new media (e.g., Facebook, WhatsApp, Twitter, YouTube and Instagram). Moreover, in spite of the commonplaceness of family businesses in Nigeria, these businesses still experience weak diversiﬁcation, bankruptcy and loss of socio-emotional wealth. Consequent upon the foregoing, this paper specifically investigates if involvement in social network via the traditional media (i.e., participation in business association’s meetings, workshops, seminars) and the new media (i.e., participation in the business association’s interactive sessions on trending business issues through the association’s online social platform like WhatsApp, Twitter), influence family businesses in South Eastern Nigeria to diversify into similar or different businesses. Methodology: The study adopted a qualitative methodology. The qualitative data were generated via interview involving 30 purposively selected businesses from South Eastern Nigeria. This comprises 15 family businesses each that have respectively adopted related and unrelated diversification strategies. Two respondents (i.e., the business owner and a top level manager) each were drawn from the selected businesses. In all, 60 respondents were interviewed. Since the unit of analysis is the family business, the interview transcriptions from all the respondents were subjected to thematic content analysis on the basis of the family businesses. Contribution: Active involvement and participation in all the meetings, discussions, workshops and seminars of the social network via the traditional and new media platforms facilitates the adoption of related or unrelated diversification in family businesses. Moreover, the adoption of similar social network platforms like WhatsApp and Twitter in all the relationships among and between employees and managers, and the transactions of the businesses is one of the key factors for achieving successful related or unrelated diversification in family businesses. Findings: In spite of the risky nature of the business environment, the adoption of related diversification strategies is significantly influenced by resources such as business consultancy services garnered through the traditional and new media platforms of the social network. Also, family businesses that are actively involved in a social network where the actors interact through the traditional and new media are influenced by the resources acquired to consider adopting unrelated diversification. These resources include: better understanding of the nature of business challenges, environments and experiences; and different lines of businesses. Thus, the traditional and new media platforms are complementary in their roles. Recommendations for Practitioners: Family business owner-managers could use the findings to develop related or unrelated strategies for diversifying into existing or new markets. This can be through the localization of manufacturing plant, improvement of product packaging, sitting of sales outlet closer to the consumers, introduction of lower prices for products/services, introduction of new and better ways of service delivery, or development of more compelling promotion strategies. Recommendation for Researchers: As a veritable guide, this study could guide future researchers in the formulation of their objectives, selection of instrument for data collection and respondents, and adoption of method of data analysis. Impact on Society: Successful diversification suggests the establishment of new or more businesses. Consequently, these new or more family businesses are expected to translate to more employment opportunities and by extension reduction in unemployment and poverty rates in the society. Future Research: Further studies should be carried out to enhance the development of family businesses, contribute to the existing literature and ensure the generalization of the findings.

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Section: Discussion Of Findingsmentioning

confidence: 99%

Section: Diversificationmentioning

confidence: 99%

Section: Related Diversificationmentioning

confidence: 99%

Section: Unrelated Diversificationmentioning

confidence: 99%

Section: Related Studiesmentioning

confidence: 99%

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The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

Agbim¹,

Igwe

2019

IJIKM

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Post internationalization strategies of born global service firms

Dhandapani

Upadhyayula

Basant

2019

Self Cite

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Purpose Extant literature suggests that post-entry internationalization strategies and performance implications of born globals are an under-researched area. This paper aims to examine the internationalization strategies of born global service firms (BGSFs) and performance implications thereof through strategic group analysis of hand-collected data from Indian information technology (IT) firms. Design/methodology/approach Strategic group analysis has been used to examine if there are any differences in the strategic decisions across firms and if there are any implications of these strategies on the performance of firms. The strategic group approach helps understand not only the antecedents but also the strategic trade-offs that different groups of BGSFs face after internationalization. The study uses Indian IT industry as the context for analysis of BGSFs, as studies have found that the Indian IT industry to have significant presence of born globals. Findings Four distinct strategic paths were found to be followed by BGSFs. In addition, the nature of services and ways of mobilization or deployment of resources explain the different internationalization paths and consequently performance. The performance differences primarily stem from the choice of degree of commitment and scope of internationalization. Practical implications This study provides distinct insights to practice by charting internationalization paths for an emerging born global. Originality/value This paper contributes to the theory on born globals by using strategic lens to explain the internationalization paths and their performance implications.

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Information technology capability as competitive advantage in emerging markets

Arora

Rahman

2017

Int Journal of Emerging Mkts

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Purpose The purpose of this paper is to examine the impact of superior IT capability on financial performance of firms in the chemicals and chemical products industry in India. Design/methodology/approach Financial performance of 28 firms with superior IT capability has been compared with benchmark over a period of six years. Findings This research has five important findings for the chemicals and chemical products industry in India: there is positive association between superior IT capability and return on sales (ROS); firms with superior IT capability are able to earn higher margins on their products; asset turn of firms with superior IT capability is less than benchmark; capital markets give higher valuation to firms with superior IT capability; and this superior performance in terms of better ROS and higher capital market valuation is sustainable over a period of time. Originality/value This is the first empirical study that has analysed the influence of IT capability on financial performance of firms in a specific industry in the context of India.

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Two paths to diversification

Cited by 4 publications

References 68 publications

The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

Post internationalization strategies of born global service firms

Information technology capability as competitive advantage in emerging markets

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