Business Model Diversification, Resource Relatedness, and Firm Performance
Journal
Academy of Management Proceedings
ISSN
0065-0668
Type
conference paper
Date Issued
2014-08-01
Author(s)
Abstract
Despite the recognition that many firms operate multiple business models at the same time, little is known about when and how business model diversification may create value. In this study, we develop the construct of business model relatedness and examine its relationship with firm performance. Using a unique panel dataset of multibusiness firms in the retail- and wholesale-trade sectors (1997-2010), we find that the extent to which business model diversification is related increases firm performance. Interestingly, results also show that business model relatedness is more influential in determining firm performance than industry relatedness. This finding suggests that the concept of business model relatedness may be better able to capture the underlying resource relatedness among lines of business than the traditionally used concept of industry relatedness.
Language
English
Keywords
Business Model
Corporate Diversification
Firm Performance
Resource-based View
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Academy of Management Annual Meeting Proceedings. 2014
Publisher
Academy of Management
Publisher place
New York
Start page
233
End page
238
Pages
6
Event Title
74th Academy of Management Annual Meeting (AOM) 2014 "The Power of Words"
Event Location
Philadelphia, PA
Event Date
01.-05.08.2014
Subject(s)
Division(s)
Eprints ID
230585