An extensive empirical literature in strategy and finance studies the performance implications of corporate diversification. Two core debates in the literature concern the existence of a diversification discount and the relative importance of industry relatedness and market structure for the...

Although Strategy research aims to understand how firm actions have differential effects on performance, most empirical research estimates the average effects of these actions across firms. This paper promotes Random Coefficients Models (RCMs) as an ideal empirical methodology to study firm...

We extend the formal literature on the value-based foundations of strategy, an approach which seeks to integrate industry-level and firm-level analyses of superior performance. The value-based approach starts with the set of players in an industry value chain and their value creation...