Promoting Synergies in Multiproduct Firms: Toward a Resource-based View

Nicolai Foss () and Mikael Iversne

No 97-12, IVS/CBS Working Papers from Department of Industrial Economics and Strategy, Copenhagen Business School

Abstract: We address the issue of promoting synergies in divisionalized, diversified firms from the perspectives of the resource-based view and recent work on corporate headquarters, thus connecting the analysis of sustained competitive advantage with organizational issues. We begin by clarifying the concept of synergy, and argue that the concept of complementarity is particularly likely to capture most meanings of synergy. Furthermore, we argue that the raison d'etre of the corporate headquarters lies in their synergy-creating potential. The reasoning is illustrated with examples from Danish corporations, specifically Danfoss and Bang & Olufsen.

Keywords: competitive advantage; synergy; coroprate headquarter (search for similar items in EconPapers)
JEL-codes: L21 L22 M2 (search for similar items in EconPapers)
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