What question did this study set out to answer?

To review and critique three distinct theoretical perspectives explaining the antecedents and firm performance outcomes associated with corporate diversification.

June 1, 1990Journal of Management

Antecedents and Performance Outcomes of Diversification: A Review and Critique of Theoretical Perspectives

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Authors

RHRobert E. HoskissonRice University MHMichael A. HittNational Natural Science Foundation of China

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Implication

Theoretical review evaluates diversification drivers and performance outcomes across firms, highlighting the critical role of market structures and managerial incentives.

Key Points

To review and critique three distinct theoretical perspectives explaining the antecedents and firm performance outcomes associated with corporate diversification.
Synthesized theoretical literature evaluating diversification under three primary conceptual models.
Categorized theoretical assumptions across market perfection with homogeneous products, dual market and firm imperfections, and imperfect governance structures with managerial agency motives.
Demonstrated that divergent assumptions regarding market efficiency and internal firm homogeneity yield conflicting predictions about the antecedent resources and incentives driving diversification.
Showed that governance imperfections fundamentally alter expected performance outcomes by aligning diversification decisions with managerial self-interest rather than firm value creation.
Identified critical gaps across existing perspectives and outlined comparative frameworks to guide empirical research on the diversification-performance relationship.

Cite This Study

Hoskisson et al. (1990) studied this question.

synapsesocial.com/papers/6a120e49c031bb6829a5d2ad https://doi.org/10.1177/014920639001600210

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Implication

Theoretical review evaluates diversification drivers and performance outcomes across firms, highlighting the critical role of market structures and managerial incentives.

Antecedents and Performance Outcomes of Diversification: A Review and Critique of Theoretical Perspectives

Discussion

Member takes

Implication

Key Points

Cite This Study

Antecedents and Performance Outcomes of Diversification: A Review and Critique of Theoretical Perspectives

Discussion

Member takes

Implication

Key Points

Cite This Study

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