Scholion.ai

Corporate Ideology, Diversification and Firm Performance

Irene Goll, Rakesh B. Sambharya

Organization Studies · 1995 · Volume 16 · Issue 5

DOI: 10.1177/017084069501600504

Abstract

The literature suggests that the fit between corporate culture and strategy influences firm performance. The present study examines the moderating effect of diversification strategy on the link between corporate ideology, a component of culture, and firm performance. A cross-sectional survey of the largest manu facturing firms in the United States was conducted measuring corporate ideo logy and diversification strategy. A moderated regression analysis was con ducted and it was found that the interaction between ideology and diversification exerts a significant effect on firm performance thus supporting the importance of strategic fit.

Keywords

Descriptors: culture, ideology, strategy, diversification, firm performance

Enable JavaScript for citation tools and additional paper interactions.