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The Cost Of Diversification: An Organizational Perspective

Author

Listed:
  • Namhoon Kwon

    (Konkuk University)

Abstract

This paper approaches the issue of corporate diversification from the perspective of the theory of firm. The cost of diversification is identified by the loss of innovative information due to increased communication requirement within the firm. The level of diversification is shown to decrease with a better information processing technology and stabler business environment. These results are in accordance with historical and industrial patterns of diversification.

Suggested Citation

  • Namhoon Kwon, 2004. "The Cost Of Diversification: An Organizational Perspective," Korean Economic Review, Korean Economic Association, vol. 20, pages 275-292.
  • Handle: RePEc:kea:keappr:ker-20041231-20-2-04
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    More about this item

    Keywords

    diversification; firm organization; lattice-theoretic method;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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