The Performance of related and unrelated diversified firms: Theory and evidence
Abstract Studies on the performance of related and unrelated diversified firms have shown the former to be more profitable. The Resource Based View put forward by Edith Penrose (1959 and 1995) stipulates that the presence of hard-to-duplicate resources within a firm allows for sustainability of c...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2006
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| Online Access: | https://eprints.nottingham.ac.uk/20614/ |
| _version_ | 1848792105807249408 |
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| author | thompson, temitope |
| author_facet | thompson, temitope |
| author_sort | thompson, temitope |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
Studies on the performance of related and unrelated diversified firms have shown the former to be more profitable. The Resource Based View put forward by Edith Penrose (1959 and 1995) stipulates that the presence of hard-to-duplicate resources within a firm allows for sustainability of competitive advantage. According to the author, the decision of management to expand through acquisition can only be profitable if firms take into perspective their existing resources and that of the target firm(s); implying that better performance is guaranteed if firms undertake related diversification. Furthermore, certain factors such as the economies of scope and scale, reduction of transactions costs, increase in market power, have been identified by researchers as contributing forces to the performance of related diversified firms. By investigating the pre and post merger performances of acquisitions that occurred in the UK from 1995-2003, this study hopes to test the assertion by Edith Penrose, amongst others by considering some of these factors, with the aim of giving insight into the better performance of related diversified firms. |
| first_indexed | 2025-11-14T18:39:07Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-20614 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:39:07Z |
| publishDate | 2006 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-206142017-10-12T12:12:20Z https://eprints.nottingham.ac.uk/20614/ The Performance of related and unrelated diversified firms: Theory and evidence thompson, temitope Abstract Studies on the performance of related and unrelated diversified firms have shown the former to be more profitable. The Resource Based View put forward by Edith Penrose (1959 and 1995) stipulates that the presence of hard-to-duplicate resources within a firm allows for sustainability of competitive advantage. According to the author, the decision of management to expand through acquisition can only be profitable if firms take into perspective their existing resources and that of the target firm(s); implying that better performance is guaranteed if firms undertake related diversification. Furthermore, certain factors such as the economies of scope and scale, reduction of transactions costs, increase in market power, have been identified by researchers as contributing forces to the performance of related diversified firms. By investigating the pre and post merger performances of acquisitions that occurred in the UK from 1995-2003, this study hopes to test the assertion by Edith Penrose, amongst others by considering some of these factors, with the aim of giving insight into the better performance of related diversified firms. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20614/1/finally.doc thompson, temitope (2006) The Performance of related and unrelated diversified firms: Theory and evidence. [Dissertation (University of Nottingham only)] (Unpublished) performance related unrelated diversification |
| spellingShingle | performance related unrelated diversification thompson, temitope The Performance of related and unrelated diversified firms: Theory and evidence |
| title | The Performance of related and unrelated diversified firms: Theory and evidence |
| title_full | The Performance of related and unrelated diversified firms: Theory and evidence |
| title_fullStr | The Performance of related and unrelated diversified firms: Theory and evidence |
| title_full_unstemmed | The Performance of related and unrelated diversified firms: Theory and evidence |
| title_short | The Performance of related and unrelated diversified firms: Theory and evidence |
| title_sort | performance of related and unrelated diversified firms: theory and evidence |
| topic | performance related unrelated diversification |
| url | https://eprints.nottingham.ac.uk/20614/ |