Do Institutions Matter for the Relationship between Diversification and Performance? A Meta-Analysis

Lohwasser Todor, Wagner Dominik, van Essen Marc, Lander Michel, Marano Valentina


Zusammenfassung
This paper offers a multilevel meta-analytic study of the relationship between business diversification and firm performance, encompassing 462 primary studies which cover 40 different countries. Whereas our work confirms the generally negative relationship of prior meta-analyses, this study further reveals considerable variability between the type of diversification (related vs. unrelated) and the countries considered. In particular, we find that related diversification has a positive effect on performance. We also encounter, that some institutional voids variables moderate the diversification-firm performance in the predicted relationship. Legal voids deteriorate the performance of diversified firms. Educational voids, however, lead to a positive focal relationship. We further find for legal voids the opposite for related diversification, namely that the effectiveness of a formal institution enhances the focal relationship. Our study shows a nuanced view about importance of type and institutional voids on the diversification-performance relationship.

Schlüsselwörter
Diversification; Performance; Institutions



Publikationstyp
Forschungsartikel (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2019

Fachzeitschrift
Academy of Management Best Paper Proceedings

Band
Vol. 2019

Ausgabe
1

Sprache
Englisch

ISSN
2151-6561

DOI