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RESEARCH PRODUCT
Revamping Research on Unrelated Diversification Strategy: Perspectives, Opportunities and Challenges for Future Inquiry
Giovanni Battista DagninoPasquale Massimo Piconesubject
Finance050208 financebusiness.industry05 social sciencesPrincipal–agent problemUnrelated diversificationSettore SECS-P/08 - Economia e Gestione delle ImpreseInternal capital marketDiversification (marketing strategy)Market powerAgency theory; Diversification premium/discount; Internal capital market; Market power; Strategic flexibility; Unrelated diversification; Business and International Management0502 economics and businessConceptual mapEconomicsDiversification premium/discountStrategic flexibilityStrategic managementMarket powerAgency theoryMarketingBusiness and International ManagementbusinessDiscipline050203 business & managementdescription
With the aim of achieving an advanced understanding of current research on unrelated diversification and providing fruitful groundwork to foster active interchange between disciplinary traditions, this paper detects articles from two relevant research streams; i.e., strategic management and financial economics. We first provide a brief overview of management thinking on unrelated diversification strategy. Then, we present a conceptual map that offers a comprehensive appreciation of unrelated diversification strategy antecedents (i.e., environmental and institutional, organizational value-enhancing, and managerial drivers), implementation process (i.e., managerial complexity, misallocation of resources, and structural inertia), and consequences (i.e., diversification premiums and discounts). Finally, we unpack the major gaps in our current knowledge that may help refocus the research agenda on unrelated diversification strategy and revamp the apparent waning proclivity of this issue.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-01-29 |