STRATEGIC DIVERSITY: A MECHANISM FOR EXAMINING THE STRATEGY/STRUCTURE FIT IN MULTINATIONAL COMPANIES

Abstract

This study introduces and tests strategic diversity as a mechanism for examining the strategy/structure fit in multinational corporations (MNCs). Strategic diversity is operationalized based on Galbraith and Kazanjian's (1986) framework that used a modified value‐added chain and center of gravity concept to explain diversity as a measure of the firm's movement from and around its original center of gravity. The results indicate that strategic diversity is a valid predictor of MNC organizational structure and may be more relevant for issues of strategy/structure fit in firms with international interests than the traditional measures of diversification. Future research in this area must consider the implications of strategic diversity for issues of strategy/structure fit by examining the effect of strategic diversity on both specific measures of strategy implementation and broad measures of overall economic performance.

Citation

Lewis, P.S. and Fandt, P.M. (1991), "STRATEGIC DIVERSITY: A MECHANISM FOR EXAMINING THE STRATEGY/STRUCTURE FIT IN MULTINATIONAL COMPANIES", International Journal of Commerce and Management, Vol. 1 No. 1/2, pp. 26-39. https://doi.org/10.1108/eb047272