Seeing The Big Picture: The Influence Of Industry, Diversification, And Business Strategy On Performance

Abstract

Much of the strategic management literature separates industry, corporate, and business levels of analysis, and empirical studies tend to examine these levels independently, not addressing how industry context influences diversification and how diversification strategy might influence business strategies. This article examines the interactions of industry characteristics, diversification, and business strategy in an integrated framework and offers a comprehensive model illustrating how these factors combine to influence performance. We tested the model using data from a sample of Fortune 500 firms.