Diversification strategy and firm performance

PURKAYASTHA, SAPTARSHI

Diversification strategy and firm performance Evidence from Indian manufacturing firms - 2013 - 1-24

While many scholars have examined the business group affiliation performance relationship, very few have examined the role that industry and diversification strategy plays in this focal relationship. I provide empirical evidence that the effect ofdiversified business groups on the performance of affiliated firms is dependent on (a) the industry to which the firm belongs and (b) the tppe of diversification strategy by the group. I have found that in the chemical and allied products industry, while it has a positive relationship in the transportation equipment industry.

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