Corpus ID: 17853484

RELATED DIVERSIFICATION AND STRUCTURAL COMPLEXITY

@inproceedings{Zhou2007RELATEDDA,
  title={RELATED DIVERSIFICATION AND STRUCTURAL COMPLEXITY},
  author={Y. Zhou and S. Ross},
  year={2007}
}
The diversification literature has largely focused on the degree of applicability of firm resources to a new industry: A firm should diversify into more related industries since synergistic benefits decrease with the distance between the new industry and the firm’s primary industry. This paper focuses on the costs of related diversification and, specifically, the coordination costs that accompany related diversification. It argues that related diversification presents a paradox. While related… Expand
2 Citations

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