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Author:Helfat, C.E.
Eisenhardt, K.M.
Title:Inter-temporal economies of scope, organizational modularity, and the dynamics of diversification
Journal:Strategic Management Journal
2004 : DEC, VOL 25:13, p. 1217-1232
Index terms:Strategic management
Diversification
Organizations
Companies
Language:eng
Abstract:This paper deals with inter-temporal economies of scope (hereafter as: i-t-e-of-sc.) that firms achieve by redeploying resources and capabilities btw. related businesses over time, as firms exit some markets while entering others. The transfer of resources due to market exit distinguishes our treatment of i-t-e-of-sc. from standard intra-temporal economies of scope. In addition, these i-t-e-of-sc. can benefit from a decentralized and modular organizational structure. This ability to obtain i-t-e-of-sc. via organizational modularity and recombination suggests that corporations do not necessarily need a high degree of coordination btw. business units to benefit from a strategy of related diversification.
SCIMA record nr: 257446
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