9. Palich, L. E., Cardinal, L. B., & Miller, C. C. (2000, Feb). Curvilinearity in the diversification-performance linkage An examination of over three de Flashcards
1
Q
What is perhaps the most researched linkage in the strategic manamgent literature?
A
The relationship between diversification and performance
2
Q
What do market power arguments imply?
A
Makret power arguments imply that diversification is positively associated with performance.
3
Q
What can diversification lead to regarding abandoned resources?
A
It may permit firms to exploit abandoned resources that would otherwise be non-performing, as a result of diversification.
4
Q
What does the inverted-U model imply?
A
The inverted-u model suggests that there is an optimal level of diversification for a firm in order to maximize its performance, beyond which further diversification leads to diminishing returns.
