The dominant logic: A new linkage between diversity and performance

TLDR

Existing research offers several partial explanations for how diversification relates to performance, yet none provide a reliable predictive theory. This paper proposes a new conceptual linkage to supplement current theories on the relationship between diversity and performance.

Abstract

Abstract Current research offers alternative explanations to the ‘linkage’ between the pattern of diversification and performance. At least four streams of research can be identified. None of these can be considered to be a reliable, predictive theory of successful diversification. They are, at best, partial explanations. The purpose of this paper is to propose an additional ‘linkage’, conceptual at this stage, that might help our understanding of the crucial connection between diversity and performance. The conceptual argument is intended as a ‘supplement’ to the current lines of research, rather than as an alternative explanation.