We investigate the idea that firms diversify to utilize excess capacity of resources. Knowledge of these resources allows us to make predictions about the direction of a firm's expansion. We expect that excess physical resources, knowledge based resources, and external financial resources support more related diversification, than internal financial resources.
No takes yet. Share an insight, caveat, or question.
Chatterjee et al. (1988) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: