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Related And Unrelated Diversification And Their Effect On Human Resource Management Controls

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  • W. GLENN ROWE
  • PATRICK M. WRIGHT

Abstract

This paper examines the link between related and unrelated diversification and human resource management (HRM) controls. The paper presents a model proposing that the type of corporate (macro) controls used by related or unrelated firms implies a relative emphasis on either flexibility or fit among HRM practices in that related firms emphasize flexibility and unrelated firms emphasize fit. This emphasis on flexibility or fit, in turn, has implications for the use of HRM (micro) controls such as clan, behavior, and outcome controls such that related firms exhibit the use of all three types of HRM controls, while unrelated firms exhibit a relative emphasis on the use of outcome controls. © 1997 by John Wiley & Sons, Ltd.

Suggested Citation

  • W. Glenn Rowe & Patrick M. Wright, 1997. "Related And Unrelated Diversification And Their Effect On Human Resource Management Controls," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 329-338, April.
    • Handle: RePEc:bla:stratm:v:18:y:1997:i:4:p:329-338
    DOI: 10.1002/(SICI)1097-0266(199704)18:43.0.CO;2-W
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    Cited by:

    1. Peter G. Klein & Robert Wuebker, 2020. "Corporate diversification and innovation: Managerial myopia or inefficient internal capital markets?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(8), pages 1403-1416, December.
    2. Askarany, Davood & Spraakman, Gary, 2020. "Regional diversification and financial performance through an excess-capacity theory lens: A new explanation for mixed results," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    3. Ambos, Björn & Kunisch, Sven & Leicht-Deobald, Ulrich & Schulte Steinberg, Adrian, 2019. "Unravelling agency relations inside the MNC: The roles of socialization, goal conflicts and second principals in headquarters-subsidiary relationships," Journal of World Business, Elsevier, vol. 54(2), pages 67-81.
    4. Frantz Maurer, 1999. "L'influence des fluctuations boursières sur la performance financière de la firme diversifiée," Revue Finance Contrôle Stratégie, revues.org, vol. 2(4), pages 105-134, December.
    5. Gonzalo Maldonado-Guzman & Sandra Yesenia Pinzón-Castro & Heira Georgina Valdez-Bocanegra, 2017. "Logistics Flexibility and Customer Satisfaction in Spain’s Furniture Industry," International Business Research, Canadian Center of Science and Education, vol. 10(8), pages 161-172, August.
    6. Conti, Claudio Ramos & Goldszmidt, Rafael & Vasconcelos, Flávio Carvalho de, 2015. "Estratégias para desempenho superior em recessões: pro ou contra-cíclicas?," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 55(3), May.
    7. Oleg Curbatov & Marie Louyot-Gallicher, 2015. "Knowedge Marketing," Post-Print hal-01423209, HAL.
    8. Llorens, F. Javier & Molina, Luis M. & Verdu, Antonio J., 2005. "Flexibility of manufacturing systems, strategic change and performance," International Journal of Production Economics, Elsevier, vol. 98(3), pages 273-289, December.

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