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IMAGES OF AN UNFOLDING DIVERSIFICATION PROJECT
Authors:ROBERT P. BOOD
Affiliation:Faculty of Economics, Department of Business Administration &; Management Sciences, P.O. Box 800, 9700 AV Groningen, The Netherlands
Abstract:This article studies a diversification-project in a medium-sized company from a cognitive perspective. Using a set of cognitive mapping techniques, it focuses on the images which the managers in this company have of the evolving diversification project in which they are involved. At the same time, it seeks to explore the organizational learning processes that arise during diversifying. It is suggested that a strict division of activities during the course of a diversification project may hamper organizational learning, as it excludes the possibility for acquiring shared experiences and thus of creating a common frame of reference. Consequently, it is argued that organizational learning during a diversification process may benefit from the active involvement (to some extent) of the various parties in each other’s activities.
Keywords:Diversification strategy   cognitive mapping   organizational learning   strategic management
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