Organizing to Attain Potential Benefits from Information Asymmetries and Economies of Scope in Related Diversified Firms
Academy of Management ReviewPublished 1 October 1993
Praveen R. Nayyar, Robert K. Kazanjian
Citations42
SJR quartileQ1
SJR score14.40
SNIP6.11
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
Abstract
Diversified firms can obtain benefits from information asymmetries and economies of scope. Each source of benefits is based on different underlying mechanisms. Attaining benefits relies on the adoption of appropriate organization structures and processes, which should be designed on the basis of the organizational requirements of each source of benefits.
Keywords
Business, Management and Accounting
Bell System Technical JournalA Mathematical Theory of Communication
80,675 Citations1948Claude E. Shannon
International Journal of ForecastingHarvard Business Review
18,229 Citations1988J. Scott Armstrong, David M. Georgoff
Journal of Economic IssuesThe Economic Institutions of Capitalism
14,988 Citations1987William M. Dugger
Management ScienceOrganizational Information Requirements, Media Richness and Structural Design
9,556 Citations1986Richard L. Daft, Robert H. Lengel
Models are proposed that show how organizations can be designed to meet the information needs of technology, interdepartmental relations, and the environment to both reduce uncertainty and resolve equivocality.
Management ScienceAsset Stock Accumulation and Sustainability of Competitive Advantage
8,371 Citations1989Ingemar Dierickx, Karel Cool
Management ScienceStrategic Factor Markets: Expectations, Luck, and Business Strategy
5,535 Citations1986Jay B. Barney
Academy of Management ReviewToward a Model of Organizations as Interpretation Systems
4,302 Citations1984Richard L. Daft, Karl E. Weick
Journal of Financial EconomicsThe market for corporate control
4,218 Citations1983Michael C. Jensen, Richard S. Ruback
Academy of Management JournalMAKING FAST STRATEGIC DECISIONS IN HIGH-VELOCITY ENVIRONMENTS.
3,758 Citations1989Kathleen M. Eisenhardt
Administration in Social WorkStrategy and Structure:
3,546 Citations1986Lynn Harold Vogel, Irma Patterson
Lecture notes in economics and mathematical systemsThe Economics of Information
3,367 Citations1976George J. Stigler
Strategic Management JournalThe dominant logic: A new linkage between diversity and performance
2,862 Citations1986C. K. Prahalad, Richard A. Bettis
American Sociological ReviewA Framework for the Comparative Analysis of Organizations
2,507 Citations1967Charles Perrow
MIS QuarterlyMessage Equivocality, Media Selection, and Manager Performance: Implications for Information Systems
2,335 Citations1987Richard L. Daft, Robert H. Lengel +1 more
The findings indicate that media vary in their capacity to convey information cues and that high performing managers are more sensitive to the relationship between message ambiguity and media richness than low performing managers.
From Competitive Advantage to Corporate Strategy
2,108 Citations1989Michael E. Porter
Journal of Economic Behavior & OrganizationEconomies of scope and the scope of the enterprise
1,762 Citations1980David J. Teece
Management ScienceStrategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry
1,507 Citations1988L. J. Bourgeois, Kathleen M. Eisenhardt
An imperative to make major decisions carefully but to decide quickly; to have a powerful, decisive CEO and a simultaneously powerful top management team; to seek risk and innovation, but to execute a safe, incremental implementation; and despite the apparent paradox, effective firms do all of these simultaneously.
Strategic Management JournalDeterminants of firm performance: The relative importance of economic and organizational factors
1,301 Citations1989Gary S. Hansen, Birger Wernerfelt
Using a representative model from each paradigm, it is found that both sets of factors are significant determinants of firm performance and that organizational factors explain about twice as much variance in profit rates as economic factors.
Strategic Management JournalChief executive scanning, environmental characteristics, and company performance: An empirical study
1,053 Citations1988Richard L. Daft, Juhani Sormunen +1 more
The findings suggest that customer, economic and competitor sectors generated greater strategic uncertainty than technological, regulatory and sociocultural sectors.
Communication ResearchMedia Symbolism, Media Richness, and Media Choice in Organizations
899 Citations1987Linda Klebe Treviño, Robert H. Lengel +1 more
Administrative Science QuarterlyA Tentative Exploration into the Amount and Equivocality of Information Processing in Organizational Work Units
893 Citations1981Richard L. Daft, Norman B. Macintosh
Strategic Management JournalOrganizational alignment as competitive advantage
876 Citations1992Thomas C. Powell
Strategic Management JournalResearch on corporate diversification: A synthesis
800 Citations1989Vasudevan Ramanujam, P. Rajan Varadarajan
Strategic Management JournalCultural differences and shareholder value in related mergers: Linking equity and human capital
763 Citations1992Sayan Chatterjee, Michael Lubatkin +2 more
A strong inverse relationship is suggested between perceptions of cultural differences and shareholder gains, after controlling for perceptions of the buying firm's tolerance for multiculturalism and the relative size of the merging firms.
Strategic Management JournalTransaction cost analysis of strategy‐structure choice
718 Citations1988Gareth R. Jones, Charles W. L. Hill
Using a transaction cost approach, this paper analyzes the relationship between strategy, structure and organizational performance and provides a framework for analyzing corporate strategy choice.
Strategic Management JournalStrategy implementation versus middle management self‐interest
675 Citations1986William D. Guth, Ian C. MacMillan
It is suggested that middle managers with low or negative commitment to the strategies formulated by senior management create significant obstacles to effective implementation.
Strategic Management JournalStrategic control systems and relative r&d investment in large multiproduct firms
540 Citations1988Robert E. Hoskisson, Michael A. Hitt
In a nuclear reactor Creep test cell, the test specimen is subjected to tension and nuclear radiation and is compared with a reference test piece of the same material subjected to nuclear radiation only.
Academy of Management ReviewMergers and the Performance of the Acquiring Firm.
525 Citations1983Michael Lubatkin
Journal of MarketingManaging in the Service Economy
511 Citations1988William R. George, James L. Heskett
The Bell Journal of EconomicsOrganizational Structure and Economic Performance: A Test of the Multidivisional Hypothesis
484 Citations1978Henry Ogden Armour, David J. Teece
Academy of Management ReviewStrategy and Structure in the Multiproduct Firm
480 Citations1987Charles W. L. Hill, Robert E. Hoskisson
PubMedMatrix management: not a structure, a frame of mind.
360 Citations1990C A Barlett, Sumantra Ghoshal
In many of the world's leading corporations, strategic thinking has outdistanced organizational capability, but many of them have fallen into a second, structural trap and adopted elaborate organizational matrices that actually impair their ability to implement sophisticated strategies.
Strategic Management JournalGrowth strategies for service firms
350 Citations1980James M. Carman, Éric Langeard
Academy of Management JournalRESOURCE SHARING AMONG SBUs: STRATEGIC ANTECEDENTS AND ADMINISTRATIVE IMPLICATIONS.
327 Citations1986Anil K. Gupta, Vijay Govindarajan
Strategic Management JournalInformation asymmetries: A source of competitive advantage for diversified service firms
305 Citations1990Praveen R. Nayyar
Information asymmetries are generally considered as leading to costs for both parties in an exchange transaction, but can be a source of competitive advantage for service firms that diversify into other services that meet the needs of existing customers.
Academy of Management JournalMULTIDIVISIONAL STRUCTURE AND PERFORMANCE: THE CONTINGENCY OF DIVERSIFICATION STRATEGY.
239 Citations1987Robert E. Hoskisson
Strategic Management JournalOn ‘dominant logic’, relatedness and the link between diversity and performance
204 Citations1988Robert M. Grant
By examining dominant logic in relation to the functions and systems of corporate management, it is possible to operationalize the concept of dominant logic and identify the key components of relatedness at the strategic level.
Journal of Industrial EconomicsInternal Organization and Economic Performance: An Empirical Analysis of the Profitability of Principal Firms
193 Citations1981David J. Teece
Academy of Management ReviewDecentralization, Strategy, and Effectiveness of Strategic Business Units in Multibusiness Organizations
157 Citations1986Vijay Govindarajan
Academy of Management ReviewThe Human Side of Economic Organization
150 Citations1990Donald W. Griesinger
Strategic Management JournalDiversification: The growing confusion
135 Citations1986Richard Reed, George A. Luffman
Only by returning to this type of thinking can the legitimacy of diversification be revived and the alternating acclamation and denunciation of the strategy be overcome.
Academy of Management ReviewImplementing Internal Diversification: Contingency Factors for Organization Design Choices
90 Citations1987Robert K. Kazanjian, Robert Drazin
Journal of Political EconomyInformation Costs, Duration of Search, and Turnover: Theory and Applications
44 Citations1981Louis L. Wilde
Journal of ManagementA Preliminary Investigation Into the Influence of Customer-Firm Interface on Information Processing and Task Activities in Service Organizations
40 Citations1986Peter K. Mills, Thomas A. Turk
