How to undertake apparently unrelated diversification and build an empire

Abstract

Not only the types of strategic resources, but also the methods of sourcing resources are found to result in heterogeneous firm performances. Not all unrelated diversifications are same either. There are strong serial and cross-sectional dynamics about the execution of various practices of unrelated diversification. The definition of performance also dynamically changes across different business groups. The existing literature focuses on how corporate diversification creates value, using measures of relatedness as moderating variables. We contribute to the research by classifying diversification practices, investigating their performance and recommending how to undertake unrelated diversification.