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Organizational Learning and Diversification

Johannes M. Pennings, Harry Barkema and Sytse Douma
The Academy of Management Journal
Vol. 37, No. 3 (Jun., 1994), pp. 608-640
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/256702
Page Count: 33
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Organizational Learning and Diversification
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Abstract

Employing concepts of lateral and longitudinal learning, we examined the dissolution of 462 expansions of Dutch firms, both acquisitions and new ventures. We interpreted the endurance of an expansion as reflecting success. Results show that expansions were more persistent when related to a firm's core skills, fully owned, and the result of acquisition rather than internal development. Expansions were also likely to last longer if a firm's prior diversification activity level was high.

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