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IN THE EYES OF THE BEHOLDER: CONCEPTUALIZATIONS OF RELATEDNESS HELD BY THE MANAGERS OF LARGE DIVERSIFIED FIRMS
Authors:J L STIMPERT  IRENE M DUHAIME
Abstract:In this study, chief executive officers were surveyed to evaluate how they perceive their firms’ businesses to be related. Responses from nearly 200 top executives provided the data for this study. Findings suggest that some managers think of relatedness in terms of similarities in products, markets, and technologies, a type of relatedness that is assessed by existing measures of diversification. The study also found, however, that managers hold additional conceptualizations of relatedness, including relatedness characterized by an emphasis on shared differentiation and marketing skills. The importance of the study’s findings and its contributions to the diversification literature are discussed. © 1997 by John Wiley & Sons, Ltd.
Keywords:managers  diversification  relatedness  diversified firms
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