Most critical is the ability to capitalize on core competencies while also alleviating any cultural conflicts inherent in pursuing any diversification strategy (Doving, Gooderham, 2008). Related diversifications are related to core competencies can be seen in many industry value chains, especially in the financial services industry (Milberg, 2008). As related diversifications reduce the cultural, system and process risk of a merger or acquisition, they have been proven empirically to be more successful in certain industries, especially financial services (Doving, Gooderham, 2008).
References
Erik Doving, Paul N. Gooderham. (2008). Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy...
Strategic Management Journal, 29(8), 841. Retrieved August 6, 2008, from ABI/INFORM Global database. (Document ID: 1499091871).
Patrick Marren (2007). High-functioning business strategy. The Journal of Business Strategy, 28(6), 37-39. Retrieved August 7, 2008, from ABI/INFORM Global database. (Document ID: 1369331501).
William Milberg (2008). Shifting sources and uses of profits: sustaining U.S. financialization with global value chains. Economy and Society, 37(3), 420. Retrieved August 8, 2008, from ABI/INFORM Global database. (Document ID: 1507056611).
Ann Mooney (2007). Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference? Journal of Education for Business, 83(2),…
