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Relatedness and Performance: A Reexamination of the Diversification-Performance Link

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  • Ding, John Y.
  • Caswell, Julie A.

Abstract

Empirical studies of firm diversification suggest the existence of a positive relationship between the relatedness of diversification and firm performance. Using evidence from the food manufacturing sector, we find that this relationship is weak at best and that market share appears to be a more powerful predictor of firm performance.

Suggested Citation

  • Ding, John Y. & Caswell, Julie A., 1993. "Relatedness and Performance: A Reexamination of the Diversification-Performance Link," Working Papers 116116, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    • Handle: RePEc:ags:rpspwp:116116
    DOI: 10.22004/ag.econ.116116
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    17. Eom, Young Sook, 1993. "Pesticide Residue Risks, Produce Choice, and Valuation of Food Safety: A Random Utility Approach," Working Papers 116113, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    18. Steahr, Thomas E. & McMullin, Pamela, 1991. "An Interdisciplinary Framework For The Analysis Of Foodborne Disease," Working Papers 116100, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    19. Roberts, Tanya, 1987. "Salmonellosis Control: Estimated Economic Benefits," Working Papers 115797, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    20. Richard T. Rogers & Julie A. Caswell, 1988. "Strategic management and the internal organization of food marketing firms," Agribusiness, John Wiley & Sons, Ltd., vol. 4(1), pages 3-10.
    21. Caswell, Julie A. & Cotterill, Ronald W., 1988. "New Theoretical Approaches To Measuring Industry Performance," Working Papers 115806, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    22. Loehman, Edna T., 1991. "Alternative Measures of Benefit for Nonmarket Goods Which are Substitutes or Complements for Market Goods," Working Papers 115913, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    23. McLaughlin, Edward W. & Rao, Vithala R., 1988. "The Strategic Role of Supermarket Buyer Intermediaries in New Product Selection: Implications for Systemwide Efficiency," Working Papers 115905, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    24. Azzam, Azzeddine M. & Pagoulatos, Emilio & Schroeter, John R., 1988. "Agricultural Price Spreads And Market Performance," Working Papers 115900, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    25. Manalo, Alberto B., 1989. "Benefits Sought by Apple Consumers," Working Papers 115908, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    26. Johnson, D. Gale & Connor, John M. & Josling, Timothy E. & Schmitz, Andrew & Schuh, G. Edward, 1989. "Concentration Issues In The U.S. Beef Subsector," Working Papers 115907, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    27. Dorsainvil, Daniel & Lopez, Rigoberto A., 1988. "The Sources of Oligopsony Power in the Haitian Coffee Market," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270443, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    29. McLaughlin, Edward W., 1991. "NE-165 Case Study: The Fresh Company," Working Papers 116098, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    30. Rogers, Richard T. & Tokle, Robert J., 1993. "Advertising Expenditures in U.S. Manufacturing Industries, 1967 and 1982," Working Papers 116112, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    31. Coaldrake, Karen & Sonka, Steven T., 1991. "NE- 165 Case Study : LEANER PORK: Can New Sector Linkages Be Formed?," Working Papers 116103, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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    33. Williams, Richard A. & Brown, Robert N., 1991. "Health And Safety Regulation Of Small, High-Risk Subpopulations," Working Papers 115914, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    34. Cotterill, Ronald W. & Pinkerton, Don C., 1993. "Motives for Mergers in Food Manufacturing," Working Papers 116111, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    35. Lopez, Rigoberto A., 1988. "Political Economy of the United States Sugar Policies," Working Papers 115808, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    36. Julie A. Caswell & Ronald W. Cotterill, 1988. "Two new theoretical approaches to measuring industry and firm performance," Agribusiness, John Wiley & Sons, Ltd., vol. 4(6), pages 511-520.
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    38. Lee, David R., 1987. "Labor Market Dynamics in the U.S. Food Sector," Working Papers 115799, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    39. Azzam, Azzeddine M. & Pagoulatos, Emilio, 1989. "Testing for Oligopoly and Oligopsony Power," Working Papers 115906, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    40. Cotterill, Ronald W. & Haller, Lawrence E., 1988. "Entry Barriers, The Queue Of Potential Entrants, And Entry Into Food Retailing Markets," Working Papers 115903, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    41. Hopkins, Yvette S. & Connor, John M., 1992. "A Re-Examination Of Event Studies Applied To Challenged Horizontal Mergers," Working Papers 116105, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    42. Ding, John Y. & Caswell, Julie A., 1991. "A FRAMEWORK FOR ANALYSIS OF ALTERNATIVE RESTRUCTURING STRATEGIES EMPWYED BY LARGE FOOD MANUFACTURERS IN THE 1980s," Working Papers 116101, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    43. Zellner, James A., 1987. "Some Causes And Consequences Of Food Industry Conduct: A Simultaneous Analysis," Working Papers 115805, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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    Cited by:

    1. Ing, Charmaine & Christy, Ralph D., 1999. "Analyzing Establishment Growth Within New York Food Manufacturing Industries From 1987 Through 1995," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(1), pages 1-15, March.
    2. Wen, Hong & Haller, Lawrence E., 1994. "Price Determination in the Bottled Water Industry: A Case Study of Poland Spring," Working Papers 116165, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Bhuyan, Sanjib & Cotterill, Ronald W., 1994. "Countervailing Power and Seller Performance in U.S. Food and Tobacco Manufacturing Industries," Working Papers 116163, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

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