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The moderating role of the complementary nature of technological resources in the diversification-performance relationship

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  • Maryam Nasiriyar
  • Lionel Nesta

    (SKEMA Business School - SKEMA Business School)

  • Ludovic Dibiaggio

    (SKEMA Business School - SKEMA Business School)

Abstract

This article analyzes the moderating role of complementary technological resources in the diversification–performance relationship. Our contention is that entry into a new market poses challenges to complementary resources that are already being exploited and that diversification thus comes at a substantial cost to the diversifying firm. Using a sample of the world’s largest manufacturers, we find that the effect of diversification on productivity is positive for firms with an initially low level of overall technological complementarity. Firms that specialize and have existing complementarities are negatively affected by diversification because the process of unbundling and rebundling technological resources is disruptive to productive firms.
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Suggested Citation

  • Maryam Nasiriyar & Lionel Nesta & Ludovic Dibiaggio, 2014. "The moderating role of the complementary nature of technological resources in the diversification-performance relationship," Post-Print halshs-02283887, HAL.
  • Handle: RePEc:hal:journl:halshs-02283887
    DOI: 10.1093/icc/dtt058
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    Cited by:

    1. Rafał Drewniak & Robert Karaszewski, 2020. "Diffusion of knowledge in strategic alliance: empirical evidence," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 387-416, June.
    2. Ali Yunes Merza Amanalla Mohammed, 2018. "International Trade and its Impact on CO2 Emission: Empirical Study of Bahrain," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(2), pages 318-333, February.

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