search query: @author Jammine, A. P. / total: 2
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| Author: | Grant, R. M. Jammine, A. P. Thomas, H. |
| Title: | Diversity, diversification, and profitability among British manufacturing companies, 1972-84. |
| Journal: | Academy of Management Journal
1988 : DEC, VOL. 31:4, p. 771-801 |
| Index terms: | DIVERSIFICATION PROFITABILITY MANUFACTURING INDUSTRY ENGLAND |
| Language: | eng |
| Abstract: | The presented research adds to present knowledge on the performance consequences of diversification by revealing new dimensions of the relationship between diversity and profitability. Diversity and profitability have a positive relationship but product diversity leads to declining profitability once firms encounter limits to complexity. Casuality is difficult to diagnose. On balance, the evidence points more toward profitability inducing product diversification than toward diversification generating profit. At the same time, multinational diversity, encouraged by profitability in the home market, is more strongly associated with profitability than is product diversity. |
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