Diversification, Industry Dynamism, and Economic Performance

1. Front Matter

   Pages I-XXI

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2. INTRODUCTION

   • Matthias Knecht

   Pages 1-13

3. THEORETICAL BACKGROUND

   • Matthias Knecht

   Pages 14-46

4. CORPORATE DIVERSIFICATION

   • Matthias Knecht

   Pages 47-89

5. INDUSTRY DYNAMISM

   • Matthias Knecht

   Pages 90-128

6. EMPIRICAL ANALYSIS I: INDUSTRY DYNAMISM

   • Matthias Knecht

   Pages 129-187

7. EMPIRICAL ANALYSIS II:DYNAMIC-RELATEDDIVERSIFICATION

   • Matthias Knecht

   Pages 188-276

8. CONCLUSION AND OUTLOOK

   • Matthias Knecht

   Pages 277-286

9. Back Matter

   Pages 287-348

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​The decision to diversify lies at the core of corporate strategy and is one of the most important decisions for top management. Matthias Knecht introduces a new perspective on corporate diversification that extends the academic discussion and reveals substantial new insights with regards to one of the most pressing questions in strategic management: what makes a diversification strategy successful? The author introduces the dynamism of industries as the dominant force in the firm’s environment that influences the organization on all levels. Due to strategic, organizational, and managerial similarities of businesses competing in similar dynamic environments, synergistic benefits and superior economic performance can be realized through the combination of dynamic-related businesses in the corporate portfolio. This study provides a quantitative, multidimensional operationalization of industry dynamism and an in-depth assessment of the dynamism of a wide range of industries. At the core of the study lies the investigation of the performance impact of dynamic-related diversification strategies. The results provide new insights into successful portfolio construction strategies in the face of today’s dynamic environments.

• Corporate Diversifcation
• Corporate Strategy
• Dynamic Environments
• Strategic Management

• Universität Erlangen-Nürnberg, Erlangen, Germany

  Matthias Knecht

Dr. Matthias Knecht obtained his doctorate degree at Friedrich-Alexander University Erlangen-Nürnberg. He works as a strategy consultant.

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