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Promoting Synergies in Multiproduct Firms: Toward a Resource-based View

Author

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  • Nicolai J. Foss
  • Mikael Iversne

Abstract

We address the issue of promoting synergies in divisionalized, diversified firms from the perspectives of the resource-based view and recent work on corporate headquarters, thus connecting the analysis of sustained competitive advantage with organizational issues. We begin by clarifying the concept of synergy, and argue that the concept of complementarity is particularly likely to capture most meanings of synergy. Furthermore, we argue that the raison d'etre of the corporate headquarters lies in their synergy-creating potential. The reasoning is illustrated with examples from Danish corporations, specifically Danfoss and Bang & Olufsen.

Suggested Citation

  • Nicolai J. Foss & Mikael Iversne, "undated". "Promoting Synergies in Multiproduct Firms: Toward a Resource-based View," IVS/CBS Working Papers 97-12, Department of Industrial Economics and Strategy, Copenhagen Business School.
  • Handle: RePEc:ivs:iivswp:97-12
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    File URL: http://ep.lib.cbs.dk/download/ISBN/8778690188.pdf
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    Cited by:

    1. Karthik, D. & Basant, Rakesh, 2004. "Empirical Assessment of Coherence in Information Technology Firms," IIMA Working Papers WP2004-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department.

    More about this item

    Keywords

    competitive advantage; synergy; coroprate headquarter;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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