DIVERSIFY WITH CARE: DIVERSIFICATION STRATEGIES AND ORGANIZATION DEVELOPMENT

Three diversification strategies (related, unrelated, and related‐Jinked) are reviewed in terms of their organizational arrangements (coordination and control mechanisms), managerial mind sets (corporate managers' ways of doing business), and organizational learning climates (learning capacity and learning needs). It is suggested that conventional organization development techniques (both human‐processual and technostructural) are relevant for developing the necessary organizational arrangements and managerial mindsets of diversifies. The organizational transformation perspective of managing change is proposed as an effective way to develop the required organizational learning climate of diversified firms due to its dynamic and proactive nature.