Menz, MarkusMarkusMenzMattig, AndreasAndreasMattig2023-04-132023-04-132008-08-11https://www.alexandria.unisg.ch/handle/20.500.14171/77985Following a capability-based view of the firm, we argue that the inconsistent findings on the relationship between horizontal diversification and firm performance may result from a lacking focus of the literature on the role of the corporate management. Based on a sample of 164 European financial institutions we find a significant curvilinear relationship between diversification and market-based performance (Tobin's Q), but not for diversification and accounting-based performance (ROI). Our results indicate, however, that multibusiness firms benefit from a corporate management capability to foster cross-business collaboration and from a risk management capability. This research therefore contributes to a managerial perspective on corporate diversification.enMultibusiness firmsdiversificationcorporate centerconference paper