Management Innovation in Multibusiness Firms: Dimensions, Contextuality, and Performance
Type
conference paper
Date Issued
2009-08-11
Author(s)
Abstract
This study complements research on management innovation with an analysis of the performance implications and with a general classification. Introducing two dimensions of management innovation performed by the corporate center in multibusiness firms, business scope and functional scope, we suggest that scope is a determinant of firm performance. Further, we argue that fit between scope of management innovation and (a) relatedness of the businesses in the portfolio, (b) centralization of decision-making, and (c) formalization of the corporate center is advantageous. Results from a sample of 139 listed European firms do not confirm that scope of management innovation results in superior firm performance per se. Unrelated diversifying firms, however, appear to benefit from broad business scope and narrow functional scope of management innovation, while related diversifiers profit from narrow business scope and broad functional scope. Our findings contribute to the emerging literature on management innovation and to a managerial perspective on corporate strategy.
Language
English
Keywords
Management innovation
corporate strategy
multibusiness firms
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Academy of Management (AOM)
Start page
40
Event Title
69th Academy of Management Annual Meeting (AOM) 2009 "Green Management Matters"
Event Location
Chicago, IL USA
Event Date
07.-11.08.2009
Subject(s)
Division(s)
Eprints ID
53041