“Prior work has shown an association between diversification strategy and profitability. This paper replicates that association using more recent and complete data and goes on to investigate the sources of the association. Theoretical arguments are advanced which predict the association which will remain once the effects of varying industry profitability are removed. Empirical tests verify this prediction and permit the discrimination between the effects of industry and diversification strategy on profitability.”

— Richard Rumelt

Source: "Diversity and Profitability", 1982, p. 359; Abstract

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Prior work has shown an association between diversification strategy and profitability. This paper replicates that asso…" by Richard Rumelt?

Richard Rumelt 25

American economist 1942

Related quotes

“To be associated with industry no longer carries the stigma of profiteering, exploitation and of being uncaring as it did when I was at school.”

Richard Branson (1950) English business magnate, investor and philanthropist

From Branson's Foreword to the book: [Marcouse, Ian, 1996, Understanding Industry, Bath, Hodder & Stoughton, ix, 034067927-1, 2014]

“This study partitions the total variance in rate of return among FTC Line of Business reporting units into industry factors (whatever their nature), time factors, factors associated with the corporate parent, and business-specific factors. Whereas Schmalensee (1985) reported that industry factors were the strongest, corporate and market share effects being extremely weak, this study distinguishes between stable and fluctuating effects and reaches markedly different conclusions. The data reveal negligible corporate effects, small stable industry effects, and very large stable business-unit effects. These results imply that the most important sources of economic rents are business-specific; industry membership is a much less important source and corporate parentage is quite unimportant.”

Richard Rumelt (1942) American economist

Source: "How Much Does Industry Matter?", 1991, p. 167; Abstract

“[ Diversification strategy is] a firm’s commitment to diversity per se, together with the strengths, skills or purposes that span this diversity, shown by the way in which business activities are related one to another.”

Richard Rumelt (1942) American economist

Source: Strategy, structure, and economic performance. (1974), p. 29

“The difference between men is in their principle of association.”

Ralph Waldo Emerson (1803–1882) American philosopher, essayist, and poet

1840s, Essays: First Series (1841), History
Context: The difference between men is in their principle of association. Some men classify objects by color and size and other accidents of appearance; others by intrinsic likeness, or by the relation of cause and effect. The progress of the intellect is to the clearer vision of causes, which neglects surface differences. To the poet, to the philosopher, to the saint, all things are friendly and sacred, all events profitable, all days holy, all men divine. For the eye is fastened on the life, and slights the circumstance. Every chemical substance, every plant, every animal in its growth, teaches the unity of cause, the variety of appearance.

“The underlying principle of specialization is division of labor; but the term division of labor has become associated with the individual worker, whereas specialization is, in general, far reaching in its effects, and influences industrial enterprises of all kinds.”

Dexter S. Kimball (1865–1952) American engineer

Source: Principles of industrial organization, 1913, p. 37

“Nothing revives the past so completely as a smell that was once associated with it.”

Vladimir Nabokov (1899–1977) Russian-American novelist, lepidopterist, professor

“There will be no loyalty between associates in tyranny
and no power will tolerate a partner.”
Nulla fides regni sociis, omnisque potestas<br/>inpatiens consortis erit.

Marcus Annaeus Lucanus book Pharsalia

Nulla fides regni sociis, omnisque potestas
inpatiens consortis erit.
Book I, line 92 (tr. Susan H. Braund).
Pharsalia

“The mind moves by instincts, associations and premonitions and not by fixed dates or completed processes. Action and reaction will occur simultaneously: or the cause actually be found after the effect.”

G. K. Chesterton (1874–1936) English mystery novelist and Christian apologist

Ch I: The Victorian Compromise and Its Enemies (p. 17)
The Victorian Age in Literature (1913)
Context: The mind moves by instincts, associations and premonitions and not by fixed dates or completed processes. Action and reaction will occur simultaneously: or the cause actually be found after the effect. Errors will be resisted before they have been properly promulgated: notions will be first defined long after they are dead.

“The association of books with their readers is unlike any other between objects and their users.”

Alberto Manguel (1948) writer

The Symbolic Reader, p. 214.
A History of Reading (1996)

“Anti-discrimination law is inconsistent with freedom of association and the right of private property.”

Ilana Mercer South African writer

“The right to discriminate is the essence of liberty,” https://jungefreiheit.de/kolumne/2015/das-recht-auf-diskriminierung-ist-die-essenz-der-freiheit/ Junge Freiheit, April 9, 2015.
2010s, 2015

Help us to complete the source, original and additional information

Richard Rumelt 25

Related quotes

Related topics