Journal ArticleDOI
Strategy, capabilities, and business group performance
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TLDR
In this article, the authors examine the relationship among choice of industry diversification, capabilities and business group performance, as well as point out the potential concern about endogenous role of industry diverification.Abstract:
The purpose of this paper is to examine the relationships among choice of industry diversification, capabilities and business group performance, as well as to point out the potential concern about endogenous role of industry diversification.,Using data from the top 100 business groups in Taiwan from TEJ database. This study uses Heckman’s two-step estimation procedure and contingency model to achieve unbiased results and examine our hypotheses.,The results of this study find that if business groups’ marketing or operational capabilities are strong they should adopt a high level of diversification strategy and if business groups’ R&D capability is strong they should adopt a low level one. The results of this study also show that the endogenous problem of industry diversification exists, and needs to be considered. Moreover, our finding confirms the importance of capability–strategy fit, which, in turn, can achieve better performance.,On average, high industry diversification groups perform better than low industry diversification groups after controlling for endogeneity issues. Business groups can achieve better performance if their strategy choices match the capabilities they encounter. Managers should pay attention to strategy-capability fit issues. Specifically, they should review their organizational capabilities as well as check their strategies within firms.,This study is one of the first that attempts to explore the endogenous role of diversification strategy choices, and empirical examine strategy-capability fit on business group performance.read more
Citations
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Symmetric Modeling of Diversification Strategy and Organizational Structure on Financial Performance: Evidence from China
TL;DR: Based on the empirical research method, this paper established a symmetric model of diversification strategy and organizational structure on financial performance and selected data from 613 A-share-listed companies in China, from 2012 to 2016, to test the impacts of unrelated and related diversification strategies on financial performances, as well as the moderating effects of united company, holding company, and multidivisional structures on such relationships.
Journal ArticleDOI
Divestiture strategy, CEO power and firm performance
TL;DR: In this paper, the authors examined the effect of CEO power on the performance of divestiture strategy implementation by contesting the agency and power circulation theories within an emerging country context, and concluded that the positive moderating role ofCEO power has a positive effect on the relationship between divestiture and performance.
Journal ArticleDOI
Relationship between Changes in the Business Environment, Innovation Strategy Selection and Firm’s Performance: Empirical Evidence from Slovenia
TL;DR: In this article, the authors studied the relationship between changes in the external business environment, a firm's innovation strategies towards customers, and performance and found that the use of the differentiation strategy has a positive effect on firm's performance.
Journal ArticleDOI
Balancing patent portfolios and R&D efforts: examining firm performance
TL;DR: In this paper , the effect of patent portfolio balancing (PPB) on firm financial performance and the moderating role of research and development (R&D) intensity was investigated. And the results showed that high R&D firms could be more successful at diversification.
References
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Multivariate Data Analysis
TL;DR: In this paper, a six-step framework for organizing and discussing multivariate data analysis techniques with flowcharts for each is presented, focusing on the use of each technique, rather than its mathematical derivation.
Journal ArticleDOI
Sample Selection Bias as a Specification Error
TL;DR: In this article, the bias that results from using non-randomly selected samples to estimate behavioral relationships as an ordinary specification error or "omitted variables" bias is discussed, and the asymptotic distribution of the estimator is derived.
Journal ArticleDOI
Innovation and Learning: The Two Faces of R & D
TL;DR: In this paper, the authors assume that firms invest in R&D not only to generate innovations, but also to learn from competitors and extraindustry knowledge sources (e.g., university and government labs).
Journal ArticleDOI
The capabilities of market-driven organizations
Abstract: Considerable progress has been made in identifying market-driven businesses, understanding what they do, and measuring the bottom-line consequences of their orientation to their markets. The next c...
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