The moderating role of the complementary nature of technological resources in the diversification–performance relationship

Maryam Nasiriyar, Lionel Nesta and Ludovic Dibiaggio

Industrial and Corporate Change, 2014, vol. 23, issue 5, 1357-1380

Abstract: 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.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtt058 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The moderating role of the complementary nature of technological resources in the diversification-performance relationship (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:23:y:2014:i:5:p:1357-1380.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().