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Impacts Of Diversification And Corporate Entrepreneurship Strategy Making On Growth And Profitability: A Normative Model

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  • BOSTJAN ANTONCIC

    (Faculty of Management, University of Primorska, Slovenia)

Abstract

Diversification strategy is an important driver of organizational conduct and performance. Despite its recognized linkage to other strategy-making elements, such as corporate entrepreneurship, research has devoted minimal attention to explicitly investigating relationships among diversification, corporate entrepreneurship and performance elements. This study contributes to a better understanding of diversification strategy driven corporate entrepreneurship and performance by testing a normative model on a sample of 449 Slovenian firms. The findings demonstrate that single business and vertical diversification make some difference in organizational growth and profitability in terms of their direct effects, but not indirectly with the mediation of corporate entrepreneurship strategy-making elements, which can be independently of diversification important for performance improvement.

Suggested Citation

  • Bostjan Antoncic, 2006. "Impacts Of Diversification And Corporate Entrepreneurship Strategy Making On Growth And Profitability: A Normative Model," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 49-63.
    • Handle: RePEc:wsi:jecxxx:v:14:y:2006:i:01:n:s0218495806000040
    DOI: 10.1142/S0218495806000040
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    Cited by:

    1. M.ª Magdalena Jiménez-Barrionuevo & Luis M. Molina & Víctor J. García-Morales, 2019. "Combined Influence of Absorptive Capacity and Corporate Entrepreneurship on Performance," Sustainability, MDPI, vol. 11(11), pages 1-26, May.
    2. Karim, Mohammed Shamsul & Nahar, Sharmin & Demirbag, Mehmet, 2022. "Resource-Based Perspective on ICT Use and Firm Performance: A Meta-analysis Investigating the Moderating Role of Cross-Country ICT Development Status," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    3. Saadat Saeed & Shumaila Y. Yousafzai & Andreas Engelen, 2014. "On Cultural and Macroeconomic Contingencies of the Entrepreneurial Orientation–Performance Relationship," Entrepreneurship Theory and Practice, , vol. 38(2), pages 255-290, March.
    4. Francisco J. Saez-Martinez & Angela Gonzalez-Moreno, 2011. "Strategic Renewal, Cooperation, and Performance:A Contingency Approach," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 43-55, December.
    5. Linton, Gabriel & Kask, Johan, 2017. "Configurations of entrepreneurial orientation and competitive strategy for high performance," Journal of Business Research, Elsevier, vol. 70(C), pages 168-176.

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