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The dominant logic: A new linkage between diversity and performance

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  • C. K. Prahalad
  • Richard A. Bettis

Abstract

Current research offers alternative explanations to the ‘linkage’ between the pattern of diversification and performance. At least four streams of research can be identified. None of these can be considered to be a reliable, predictive theory of successful diversification. They are, at best, partial explanations. The purpose of this paper is to propose an additional ‘linkage’, conceptual at this stage, that might help our understanding of the crucial connection between diversity and performance. The conceptual argument is intended as a ‘supplement’ to the current lines of research, rather than as an alternative explanation.

Suggested Citation

  • C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
  • Handle: RePEc:bla:stratm:v:7:y:1986:i:6:p:485-501
    DOI: 10.1002/smj.4250070602
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