Bimodality in diversification: An efficiency and effectiveness rationale
Managerial and Decision EconomicsPublished 1 February 1991
Richard Reed
Citations15
SJR quartileQ2
SJR score0.62
SNIP0.80
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Abstract
Abstract Various researchers have observed that the frequency distribution of firm diversification is bimodal. The two modes are created by a majority of firms employing either very little or substantial amounts of diversification. Only a minority of firms opt for medium amounts of diversification. From theoretical discussion of the forces of efficiency and effectiveness in diversification, this work provides a rationale for the bimodality phenomenon. In turn, research implications arise regarding optimum degrees of diversification, what the impact of optimization is upon firm performance, and why the measurement of both type and degree of diversification is important.
Keywords
Economics, Econometrics and FinanceBusiness, Management and Accounting
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