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Capabilities, technological diversification and divisionalization

delete1996-05-01
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Nicholas Argyres *
DOI:10.1002/(SICI)1097-0266(199605)17:5<395::AID-SMJ826>3.0.CO;2-Edelete
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Abstract

Abstract

En 中文
This paper develops and tests the hypothesis that greater R&D diversification is associated with less divisionalization in multidivisional firms. It argues, from transaction cost theory, that the extent of divisionalization of a large firm is indicative of its emphasis on interdivisional coordination, since fewer divisional boundaries reduce interdivisional bargaining costs. Also, greater interdivisional coordination is required to pursue strategies which exploit R&D undertaken in diverse but complementary fields, that is, strategies aimed at broadening technological capabilities. Conversely, less interdivisional coordination is required for more specialized R&D, that is, for strategies aimed at deepening existing capabilities. The hypothesis finds support in patent and organizational data.
Keywords:
capabilities
technological diversification
divisionalization
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Journal

Strategic Management Journal cover
Strategic Management Journal
IF:
7.2
Papers:
3.4K
Citations:
4.6W

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