Back to Search
Start Over
Corporate diversification, firm productivity and resource allocation decisions: The data envelopment analysis approach
- Source :
- Journal of the Operational Research Society. 72:1002-1014
- Publication Year :
- 2019
- Publisher :
- Informa UK Limited, 2019.
-
Abstract
- Corporate diversification has been an important research topic in the field of business administration. Although it is regarded as an essential strategy for firms, its relationship with firm performance seems inconclusive in the literature. To fill this gap, our study uses data envelopment analysis (DEA) to develop models that help diversified firms more accurately calculate productivity at both the firm and its business segment levels, and then reallocate resources among business segments in order to achieve better firm overall performance. We empirically test the models using a sample of U.S. public firms for a period of 2012–2016. The results show that in comparison with two conventional DEA models, our model provides more useful productivity expression for diversified firms, and that the model-suggested resource reallocation is linked to better firm performance.
- Subjects :
- Marketing
021103 operations research
Strategy and Management
0211 other engineering and technologies
Resource reallocation
02 engineering and technology
Management Science and Operations Research
Diversification (marketing strategy)
Management Information Systems
Important research
0202 electrical engineering, electronic engineering, information engineering
Data envelopment analysis
020201 artificial intelligence & image processing
Business
Overall performance
Industrial organization
Subjects
Details
- ISSN :
- 14769360 and 01605682
- Volume :
- 72
- Database :
- OpenAIRE
- Journal :
- Journal of the Operational Research Society
- Accession number :
- edsair.doi...........e4760d9cf89d047e4be009be992a5af4