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Journal Articles Industrial and Corporate Change Year : 2014

The Moderating Role of Complementary Technological Resources in the Diversifcation-Performance Relationship

Abstract

This article analyzes the moderating role of complementary technological resources in the diversification–performance relationship. Our contention is that entry into a new market poses challenges to complementary resources that are already being exploited and that diversification thus comes at a substantial cost to the diversifying firm. Using a sample of the world’s largest manufacturers, we find that the effect of diversification on productivity is positive for firms with an initially low level of overall technological complementarity. Firms that specialize and have existing complementarities are negatively affected by diversification because the process of unbundling and rebundling technological resources is disruptive to productive firms.
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Dates and versions

hal-03411769 , version 1 (02-11-2021)

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Ludovic Dibiaggio, Maryam Nasyar, Lionel Nesta. The Moderating Role of Complementary Technological Resources in the Diversifcation-Performance Relationship. Industrial and Corporate Change, 2014, 23 (5), pp.1357 - 1380. ⟨hal-03411769⟩
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