Related diversification, firm level resources, and firm performance in the context of Australian extractive industry

Authors/Creators

Kwaku Alex Gyan, Edith Cowan UniversityFollow
Pieter Jan-Bezemer, Edith Cowan UniversityFollow

Abstract

Related diversification literature highlights that the reason why corporations pursue this specific type of diversification is to achieve synergistic benefits through sharing common resources efficiently across related business units for higher financial performance. However, it is unclear whether this performance is influenced by the level of firm resources that a firm possesses. Using data from Australian extractive industry, this study assesses the heterogeneity of firm resource-possession in relation to firm performance and found that related diversified firms that possess higher resource levels extract larger proportion of synergistic advantage to enhance financial performance. The study has discussed key theoretical and practical implications.

RAS ID

43790

Document Type

Journal Article

Date of Publication

4-1-2022

Volume

33

Issue

2

School

School of Business and Law

Copyright

subscription content

Publisher

Wiley

Related Publications

Gyan, K. A. (2022). Delving into the diversification and performance relationship: Building a more nuanced understanding through the inclusion of new contextual variables. https://ro.ecu.edu.au/theses/2606

Comments

Gyan, K. A., & Jan‐Bezemer, P. (2022). Related diversification, firm level resources, and firm performance in the context of Australian extractive industry. Journal of Corporate Accounting & Finance, 33(2), 142-153. https://doi.org/10.1002/jcaf.22541

Recommended Citation

Gyan, K. A., & Jan-Bezemer, P. (2022). Related diversification, firm level resources, and firm performance in the context of Australian extractive industry. DOI: https://doi.org/10.1002/jcaf.22541