Faculty Scholarship 1994 - Present

International Perspective on Corporate Diversification: Comparative Study of US and Korean Firms

The relationship between diversification and organizational performance has been the subject of numerous studies over the years (Bettis, 1981; Baysinger & Hoskisson, 1989; Lubatkin & Rogers, 1989; Rumelt, 1974, 1982). However, strategy scholars have universally defined diversification using a narrow definition, namely corporate diversification is a function of the number of businesses. It can be argued that such a definition may be outdated given the impact of international market diversification on firm performance (Kim, Hwang & Burgers, 1989; Wolf, 1975; Rugman, 1979). Integrating these two views of corporate diversification, the present paper investigates diversification differences among U.S. and Korean firms using market and product-based measures of diversification.