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DIVERSIFICATION STRATEGY, ENTRY MODE, AND PERFORMANCE: EVIDENCE OF CHOICE AND CONSTRAINTS
Author(s) -
BUSIJA EDITH C.,
O’NEILL HUGH M.,
ZEITHAML CARL P.
Publication year - 1997
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(199704)18:4<321::aid-smj874>3.0.co;2-y
Subject(s) - diversification (marketing strategy) , mode (computer interface) , industrial organization , matching (statistics) , economics , mode choice , econometrics , operations management , microeconomics , computer science , operations research , business , marketing , mathematics , statistics , engineering , transport engineering , public transport , operating system
Despite theoretical arguments matching type of diversification strategy with mode of entry, the exact form of relationships between strategy, mode of entry, and performance remains enigmatic. Our analysis, based on two samples, demonstrates that matches between strategy and mode did improve performance in one time period, but not a second. In addition, the results show that exclusive reliance on a single mode (internal development or acquisition) can restrict performance. © 1997 by John Wiley & Sons, Ltd.