Adaptation across multiple landscapes: Relatedness, complexity, and the long run effects of coordination in diversified firms
Abstract
Research Summary We study the effect of coordination between businesses on the adaptation of diversified firms. Using a simulation‐based approach, we show that coordination between businesses limits adaptation, causing the relative performance of diversified firms to decline relative to their focused counterparts over time, with this effect being strongest for moderate levels of relatedness between, and complexity within, businesses. Given...
Paper Details
Title
Adaptation across multiple landscapes: Relatedness, complexity, and the long run effects of coordination in diversified firms
Published Date
Aug 21, 2019
Journal
Volume
40
Issue
11
Pages
1791 - 1821
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