Resource-related diversification and its measures – review of empirical results

Resource-relatedness is considered to be the answer to the criticism associated with traditional product and market based measures of diversification. However, the empirical support of resource-related diversification has not been investigated yet. Therefore, the author conducts a review of 32 statistical tests derived from 18 studies, and finds substantial support. Nevertheless, a dominant measurement approach has not evolved yet. Researchers focus on specific dimensions of resource-relatedness and they apply different indicators and measurement approaches. The author concludes that a measure satisfying the multidimensionality of resource-relatedness and that consensus on a measurement approach are significant for the advancement of research on diversification.

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