Operationalizing and testing Galbraith's center of gravity theory
Article Abstract:
An expanded model of relatedness and company performance based on Jay Galbraith's 1983 center of gravity theory is introduced. The Galbraith theory considers relatedness as a multidimensional concept which is cognizant of the implementation problems that accompany diversification strategies. The new model is used to operationalize and test a managerial dimension of relatedness based on the company's historical center of gravity. The results of the empirical testing provide support for Galbraith's proposition that achieving high corporate performance may depend more on the managerial dimension of relatedness than on constrained product relatedness. This finding implies that diversified companies should stick with managerially similar lines of business to avoid too much complexity and problems with the application of core skills. Other findings are discussed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1995
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Diversification strategy, entry mode, and performance: evidence of choice and constraints
Article Abstract:
A study was conducted to examine the relationship between diversification strategy type, common modes of entry and performance. This research differs from Simmonds' (1990) analysis because it relaxes the assumption that decisions about strategy pattern and model of entry exist simultaneously. It also extends the strategy classification by including the use of related-constrained as well as related linked-strategies. Finally, it incorporates the mixed mode of development in conceptual arguments and analysis. Findings revealed that matches between strategy and mode were able to boost performance in a single time period, although not in a second. Moreover, results demonstrated that exclusive reliance on a single mode can limit performance.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1997
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Measuring organizational knowledge: a conceptual and methodological framework
Article Abstract:
Knowledge resources are different for each firm and industry which increases the difficulty of formulating an organizational knowledge measurement system.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 2003
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