Co-alignment of resources and diversification strategy on business groups
by Fang-Yi Lo
European J. of International Management (EJIM), Vol. 15, No. 4, 2021

Abstract: Firms allocating resources and adopting a proper strategy to gain better performance are important issues in the strategic paradigm. This research employs the resource-based view to explore how the resource endowment of business groups should be in co-alignment with a proper diversification strategy that positively affects their growth performance. Specifically, this study collects data from the top 300 Taiwanese business groups and incorporates the two research methods of multiple regression analysis and fsQCA (fuzzy-set Qualitative Comparative Analysis) to address the hypotheses and research questions. Results support the co-alignment concept from fsQCA in which resources can complement or substitute each other, and the right co-alignment of different resources with a diversification strategy can improve business groups' growth performance.

Online publication date: Thu, 29-Apr-2021

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