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 basis for the growth and survival of firms in the last half of the twentieth century, due to the vulnerability of the single-business firms to the fast and unexpected changes in the environment (Ansoff, 1965; Penrose, 1995). As such, corporate diversification has been one of the most one of the most widely researched (Johnson and Scholes, 2002, p304). Moreover, within the diversification research, most attention goes to …

…pp377-386. Sinha, Deepak, K. (2000), On the Differing Pattern of Corporate Diversification Across Economies, International Advances in Economic Research, Vol. 6, p749 Stern, Ithai and Henderson, Andrew. D. (2002), Within-Business Diversification in Technology-Intensive Industries, Working Paper Series 4, the University of Texas at Austin, pp25-27 Thompson, Arthur, A. and Jr. Strickland, A.J. (2001), Strategic Management: Concepts and Cases (12th ed), Von Hoffmann Press, pp282-299 Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180.