An Investigation into the Relationship between Corporate Diversification and the Performance of Firms

CHAPTER 1.0 INTRODUCTION 1.1 Background of the Study Diversification has been an essential stand for the growth and survival of firms in the last half of the ordinal century, due to the vulnerability of the single-business firms to the firm and unexpected changes in the milieu (Ansoff, 1965; Penrose, 1995). As such, integrated variegation has been adept of the most one of the most widely looked (Johnson and Scholes, 2002, p304). Moreover, inside the variegation explore, most attention goes to the investigation of the alliance in the midst of corporate diversification and the exertion of firms. It should therefore come as no surprise that the relationship between diversification and consummation has been one of the most extensively researched atomic number 18as in the discipline of industrial organization, strategic management and finance (Datta e.a., 1991, p529). Rumelts 1974 study has been the start of a huge stream of lit exploiting the relationship between corpo rate diversification and performance of firms. N evertheless, mingled attempts to demonstrate the effects of diversification on performance are inconclusive (Johnson and Scholes, 2002, p305). This lack of a clear answer in the diversification research motivates the express study.

The purpose of this study is to expatiate a map regarding the mainstream research on diversification-performance relation ever since Rumelts seminal study, to identify how further Rumelts study match into posterior empirical studies, to identify the major drawbacks of previous studies, and further to raise tentative suggestions for future research. 1.2 inqu iry Methods This study is conducted as an ! encompassing literature review. The aim is to getup a new synthetic thinking of different insights into previous research on the relationship between corporate diversification and performance of firms. Thus an extended literature review is basically sufficient. The altercate is to choose good publications and articles dealt with the military issue of this dissertation (Jankowicz, 2002). 1.3 Dissertation Structure... If you insufficiency to get a full moon essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay