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dc.contributor.authorMammen, Jan
dc.contributor.authorAlessandri, Todd
dc.contributor.authorWeiss, Martin
dc.date.accessioned2019-11-27T12:24:14Z
dc.date.available2019-11-27T12:24:14Z
dc.date.issued2019en_US
dc.identifier.issn0024-6301
dc.identifier.doi10.1016/j.lrp.2019.101942
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6417
dc.description.abstractThe risk implications of product diversification have received considerable attention from scholars. However, our understanding of the effects of geographic diversification on risk is more limited. Relying on resource-based theory to frame our arguments, we argue that despite some similarities, the two types of diversification have differing effects on firm risk. We first establish the risk reducing effects for product diversification. We then integrate the unique aspects of geographic diversification that serve as a boundary condition to the RBV perspective, arguing for the risk increasing effects of geographic diversification. Finally, since many firms pursue both forms of diversification simultaneously, we explore the joint effects of both product and geographic diversification. We test our hypotheses in a longitudinal model on a sample of S&P 500 firms. Our findings suggest that total product diversification, as well as related diversification reduce risk, while total geographic diversification increases risk. Furthermore, our data provide evidence of a complex combination of joint effects of these two forms of diversification. These findings offer a more complete understanding of the risk effects of corporate diversification.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.subjectProduct Diversificationen_US
dc.subjectGeographic Diversificationen_US
dc.subjectFirm Risken_US
dc.subjectResource-based Viewen_US
dc.titleThe risk implications of diversification: Integrating the effects of product and geographic diversification (Published Online)en_US
dc.identifier.journalLong Range Planningen_US
dc.contributor.departmentUniversity of Erlangen-Nuremberg, Lange Gasse 20, 90403, Nuremberg, Germanyen_US
dc.contributor.departmentD’Amore-McKim School of Business, Northeastern University, 360 Huntington Ave, Boston, MA, 02115, USAen_US
vlerick.knowledgedomainStrategyen_US
vlerick.typearticleVlerick strategic journal articleen_US
vlerick.vlerickdepartmentEGSen_US
dc.identifier.vperid163047en_US


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