Diversification is an important strategic alternative commonly used by organisations in pursuit of different markets and greater returns. Within the resource based view, (Collins&Montgomery, 2005) suggest that an effective diversification strategy can only be conducted if there is a fit between resources and the business opportunity so that resources contribute to competitive advantage.A quantitative research methodology was followed whereby organisations listed within the Industrial sector of the Johannesburg Securities Exchange (JSE) were categorized as diversified from period 2000 to 2010. The study empirically examined the independent and joint relationship between physical and skill base of relatedness against three financial measures in the form of hypotheses, to determine which base of relatedness influenced better performance.All three bases of relatedness had no significant effect on organizational financial performance. The findings refine our understanding of relatedness as a multidimensional concept and suggest that to have a more comprehensive evaluation of corporate diversification and its value in boosting company performance, a matrix of interrelationships across lines of business, activities, resources, industry effects and many more variables should be considered. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/27168 |
| Date | 11 August 2012 |
| Creators | Tshivhase, Konanani Morwagadi |
| Contributors | Dr R Raina, ichelp@gibs.co.za |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Dissertation |
| Rights | © 2011 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
Page generated in 0.0024 seconds