Business Commons^™

The Effects Of Corporate Diversification And Control On Division Risk-Taking Strategy And Performance, Hae Ryong Kim

Theses and Dissertations in Business Administration

This research explored two major functions of corporate strategic management, corporate diversification (core-business relatedness) and corporate control, and their implications for divisional strategic management. Four research questions were raised to address these issues: (1) does core-business relatedness matter to division performance? (2) how does core-business relatedness influence corporate control? (3) how does core-business relatedness influence division risk-taking strategies and performance? and (4) how does corporate control influence division risk-taking strategies and performance?

Adopting the resource-based view and organizational learning theory, this study proposed that core-business related divisions would outperform unrelated divisions and that core-business related divisions would have higher commitment …