The Performance Effects of Service Diversification by Manufacturing Firms

@inproceedings{Skaggs2004ThePE,
  title={The Performance Effects of Service Diversification by Manufacturing Firms},
  author={Bruce C. Skaggs and Scott B. Droege},
  year={2004}
}
Much diversification research has focused on related versus unrelated diversification and the benefits of each (e.g., Hoskisson and Hitt, 1990; Ramanujam and Veraderajan, 1989). Firms pursuing unrelated diversification attempt to reduce business risk (e.g., Amit and Wernerfelt, 1988) and systematic risk (e.g., Barton, 1988; Montgomery and Singh, 1984), creating a structure where each company in the corporate portfolio has access to internal capital. On the other hand, firms pursuing related… CONTINUE READING