Resource title

Corporate diversification and organizational structure: a resource-based view

Resource image

image for OpenScout resource :: Corporate diversification and organizational structure: a resource-based view

Resource description

We argue that the strategy of related diversification will enhance performance only when it allows a business to obtain preferential access to "strategic assets" - those that are valuable, rare, imperfectly tradable and costly to imitate. Even then, the advantage afforded by this access will eventually decay as a result of asset erosion and imitation by single-business rivals. In the long-run, therefore, only accumulated competences that enable the firm to build new strategic assets more quickly and efficiently than competitors will allow the firm to sustain supernormal profits. Both these short- and long-run advantages are conditional, however, on the diversified firm putting organizational structures in place that allow it to share its existing strategic assets and transfer the competence to build new ones between divisions in an efficient manner

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/Inseadwp1995/95-78.pdf

Resource license

Copyright INSEAD. All rights reserved