Why there? a decomposition of the choice of target industry

Abstract

This paper provides a quantitative quantitative characterization of how diversifying firms chose target industry, with an emphasis on target market and resource-/capability characteristics. We seek to improve on the existing literature by using two population level samples instead of the more restricted samples others have used, by removing important restrictions on the types of relatedness that can be captured, and by including measures of resource strength in addition to measures of relatedness.