Type
Article
Title
The Moderating Role of Complementary Technological Resources in the Diversifcation-Performance Relationship
Author(s)
DIBIAGGIO Ludovic - Histoire et Critique des Arts - Centre d'étude et de recherche d'archéologie méditerranéenne et atlantique. UHB (Author)
NASYAR Maryam - (Author)
NESTA Lionel - Observatoire français des conjonctures économiques (Author)
Editor
GB : Oxford University Press
Volume
23
Number
5
Pages
1357 - 1380 p.
ISSN
09606491
DOI
10.1093/icc/dtt058
Keywords
Technological complementarity, Technological resources, Business diversification
Abstract
EN
This article analyzes the moderating role of complementary technological resources in the diversification–performance relationship. Our contention is that entry into a new market poses challenges to complementary resources that are already being exploited and that diversification thus comes at a substantial cost to the diversifying firm. Using a sample of the world’s largest manufacturers, we find that the effect of diversification on productivity is positive for firms with an initially low level of overall technological complementarity. Firms that specialize and have existing complementarities are negatively affected by diversification because the process of unbundling and rebundling technological resources is disruptive to productive firms.
BIBLIOGRAPHIC QUOTE
EXPORT