On the measurement of corporate diversification strategy: evidence form large U.S. service firms
Article Abstract:
Current measures of corporate diversification strategies attempt to assess the extent to which companies diversify, as well as the extent to which the businesses, products, markets and technologies of these diversified firms are related. The findings of a study comparing two different methods in measuring the corporate diversification strategies of a sample of US service firms are reported. One measurement method used publicly available external data, while the other method used data gathered from sources within the service firms. Research results indicated that the two measurement methods were considerably dissimilar. Measurement using external data tended to reflect potential relatedness among the businesses of the diversified firm, while measurement using internal data tended to reflect actual relatedness. Actual and potential relatedness were found to have vast differences.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
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Stock market reactions to customer service changes
Article Abstract:
Stock market reactions to reports of changes in customer service were examined. For the study, a systematic search of a number of computerized databases was conducted. Databases included Mead's NEXIS, Infotrac and DIALOG's newspaper, business and corporate press release databases from 1981 to 1991. These provided sources of news reports of initiatives that may be related to customer service. The specific action reported in each article was determined, resulting in the identification of 12 types of actions which were further aggregated under four major customer service objectives. These objectives were identified through a survey of several potential users of the goods and services involved in the study. Results showed that customer-service increases are positively valued while decreases are negatively valued by the stock market. Implications are discussed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1995
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Information asymmetries: a source of competitive advantage for diversified service firms
Article Abstract:
Diversified service companies can use information asymmetries as a source of competitive advantage. Potential customers are faced with information asymmetries when deciding whether to purchase a service. There is an incentive to lower costs that are imposed on customers by information asymmetries. Service companies can take advantage of the incentive to lower costs by diversifying into other services that meet customer requirements. Organizations can reduce information asymmetry by transferring their reputation for high-quality services to new services.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1990
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