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- Title
PERFORMANCE DIFFERENCES BETWEEN THE WRIGLEY/RUMELT STRATEGIC CATEGORIES.
- Authors
Grant, Robert M.; Jammine, Azar P.
- Abstract
This study examines differences in profit and sales performance between the different Wrigley/Rumelt categories of diversification strategy. Our sample comprised 305 large U.K. manufacturing companies over the period 1972-84. Although diversification strategy explained only a small proportion of inter-firm performance differences, once the influence of other firm and industry variables were taken into account, significant differences did emerge. Our findings conflict with those of earlier U.S. studies. In particular, we find that diversified firms outperformed specialized firms and there was no evidence that related diversification was more successful than unrelated.
- Subjects
UNITED States; UNITED Kingdom; INDUSTRIAL management; ENTERPRISE resource planning; COST effectiveness; BUSINESS planning; RESOURCE allocation; DIVERSIFICATION in industry; PERFORMANCE evaluation; BRITISH corporations; AMERICAN corporations
- Publication
Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009, 1988, Vol 9, Issue 4, p333
- ISSN
0143-2095
- Publication type
Article
- DOI
10.1002/smj.4250090404