Acquiring and exploiting knowledge: The two faces of diversification.

摘要

This dissertation examines what factors influence changes in the product and international scope of firms over time. In contrast with previous studies which focus on a firm's ability to exploit its existing knowledge, the dissertation argues that changes in scope would also be influenced by a firm's ability to absorb new knowledge, or its absorptive capacity. Based on these arguments, the dissertation proposes an integrative framework for firm diversification and asks two research questions (1) How do economies of scope and absorptive capacity influence the change in the extent of diversification in the short run? (2) How does the change in the extent of diversification influence firm value?; In addressing the first question the dissertation argues that the change in the extent of diversification in the short run would be positively associated with economies of scope and absorptive capacity. In addition, absorptive capacity may also moderate the effect of economies of scope, given that both conditions are required for efficient diversification. Next, various factors underlying economies of scope and absorptive capacity are related to the change in the extent of diversification, such as diversity and technical, marketing and production skills. It is then suggested that absorptive capacity may also be influenced by excess managerial resources, and that these resources are likely to play a moderating role on the impact of diversity and technical, marketing and production skills. Finally, the dissertation argues that the relationship between the change in the extent of product and international diversification sheds important light on the long run incentives to diversify due to economies of scope and the short run constraints due to factors such as absorptive capacity.; In answering the second research question, the dissertation argues that if firms diversify after taking into account their absorptive capacity, then even after controlling for economies of scope, diversification would be associated with firm value. Thus diversification may enhance firm performance not only due to economies of scope, but also due to the new knowledge and intangibles accumulated by the firm.