The impact of diversification on task performance: Evidence from kidney transplant centers

Parker-Lue, Sara; Lieberman, Marvin B.

doi:10.1002/smj.3141

Cited by 14 publications

(9 citation statements)

References 63 publications

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“…In doing so, we corroborate and augment received corporate strategic management literature that highlights the importance of complementarity benefits (Bauer & Matzler, 2014; J. Kim & Finkelstein, 2009;Makri, Hitt, & Lane, 2010) and complexity costs (Parker-Lue & Lieberman, 2020;Zhou, 2011) for diversified firms by shedding light on the effects of these forces on divestitures. Our insight is that CEO strategic leadership can involve ending the history of a company-spawning parent to invigorate the adaptive capacity and prolong the life span of its newly independent corporate offspring, despite CEO incentives to increase corporate size (Gabaix & Landier, 2008).…”

supporting

confidence: 75%

Section: Discussionmentioning

confidence: 99%

“…We also evaluated the technological innovativeness of HP patents (Appendix F). Here, too, our measures of complexity add ecosystem-derived customer and partner measures of complexity to the literature that has typically examined technological and task complexity within organizations (e.g., Alnuaimi & George, 2016;Parker-Lue & Lieberman, 2020), documented in Appendix E. 12 Normalized coreference of shared citations 0.014 0.015 0.032 0.006 0.002 0.001 0.000 0.000 0.000 Knowledge base complementarity measured through four-digit CPC codes (Leydesdorff, 2007) a To measure interindustry relatedness, we followed the method of Fan and Goyal (2006). To do so, we used the 2012 Use As we developed the final version of our theoretical framework, we returned to the data and examined the role of the uncovered forces in the previous spin-off attempts at HP by CEO Lew Platt.…”

Section: Hpe Hpimentioning

confidence: 99%

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Why Multibusiness Corporations Split: CEO Strategizing as the Ecosystem Evolves

Burgelman

Snihur

Thomas

2021

Journal of Management

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We investigate why CEOs of multibusiness corporations decide to engage in a corporate split that spawns multiple independent, smaller, but more adaptive, entities. Through an in-depth examination of the dynamic forces that led CEO Meg Whitman to split HP, we propose that the company’s evolving business ecosystem led to the divergence of the consumer-oriented and enterprise-oriented business models in the corporate portfolio. We document the interplay between inter–business model complementarity and intra–business model complexity and how this vicious cycle, in combination with increasing capital market pressure, led to the CEO decision to split and her public justification for this momentous move. Our combined longitudinal interpretative and realist process-tracing approach generates one of the first conceptual frameworks to integrate insights from the ecosystem and corporate divestiture literatures.

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supporting

confidence: 75%

Section: Discussionmentioning

confidence: 99%

Section: Hpe Hpimentioning

confidence: 99%

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Why Multibusiness Corporations Split: CEO Strategizing as the Ecosystem Evolves

Burgelman

Snihur

Thomas

2021

Journal of Management

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“…The logical consequence of diversification is the formation of a new strategic business unit, which can cause the company's organizational structure to widen. This situation potentially can engender higher coordination costs and information asymmetry (Zhou, 2011;Hashai, 2015;Hernández-Trasobares et al, 2017;Parker-Lue & Lieberman, 2020). According to agency theory, the latter may even lead to moral hazards and adverse selection (Gomariz & Ballesta, 2014).…”

Section: Diversification and Firm Performancementioning

confidence: 99%

Diversification, Ceo Commitment, and Firm Performance

Silalahi¹,

Dwinanto²

2021

DRMJ

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but it is apparent that the impact of diversification still generates much debate given the mixed findings (Palich et al., 2000;Volkov & Smith, 2015). Some studies revealed that implementing a diversification strategy can adversely the performance affect (Zhou, 2011;Hashai, 2015;Gyan, 2017), which is in contrast to other studies that pinpointed how diversification strategies actually can improve the company performance (Kuppuswamy & Villalonga, 2016;Chan, Bany-Ariffin, and Nasir, 2019).One of the factors causing the differing research results is the use of variables that moderate the relationship between diversification and company performance (de Andrés, Fuente, & Velasco, 2017). Among these factors is corporate governance, which includes the level of supervision and chief executive officer (CEO) performance (Jara-Bertin, 2015). In particular, diversification can cause a company's organizational structure to expand, which leads to higher information asymmetry. Such an issue poses great difficulty for coordination and supervision (Bushman, Chen, Engel, & Smith, 2004; Rodríguez-Pérez & Van Hemmen, 2010), decreasing the company's performance.The increasingly complex coordination in companies with a broader organizational structure makes it vital to establish an effective coordina-This study examined the effect of diversification strategies on firm performance and the extent to which the chief executive officer (CEO) commitment moderates this relationship. The effect of diversification on firm performance was analyzed in a sample with both above-average and below-average diversification levels. The sample consisted of 76 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2007 to 2018, which were analyzed using panel data regression with a balanced panel. Tobin's Q was utilized to measure firm performance, compounded with three measures of diversification strategies: entropy index, Herfindahl index, and the number of segments. The results show that diversification leads to lower firm performance, whereas CEO commitment eliminates the negative influence of diversification on company performance in all measurement models (i.e., entropy, Herfindahl index, and the number of segments). Accordingly, the negative effect of diversification strategies and consistent CEO commitment were observed among the samples with high and low diversification levels.

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“…Global competition leads to diversification in healthcare services and sustainable business models. This sector is doing everything to bring the services closer to the patients (Joshi and Joshi, 2016;Parker-Lue and Lieberman, 2020). Owing to dynamic business models and competition, the health industry is going through digital transformation.…”

Section: Introductionmentioning

confidence: 99%

Barriers to blockchain adoption in health-care industry: an Indian perspective

Sharma

Joshi

2021

JGOSS

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Purpose This paper aims to identify barriers toward the adoption of blockchain (BC) technology in Indian health-care industry and also examines the significant issues of BC applications in health-care industry. Design/methodology/approach The barriers of the study are identified by two phases including the review of literature and semistructured interviews with hospital staff and administration operating in India. The experts (N = 15) are being taken from top-level management, IT experts and patients from the hospitals. The study implemented integrated total interpretative structural modeling-FUZZY-Cross-impact matrix multiplication applied to classification (TISM-FUZZY-MICMAC) methods for identifying the interrelationship among the barriers. Findings A total of 15 barriers have been determined in the Indian health-care industry through discussion with the selected experts. TISM is applied to develop multilevel structure for BC barriers. Further, FUZZY-MICMAC has been used to compute driving and dependent barriers. The findings suggest that low awareness related to legal issues and low support from high level of management have maximum driving power. Research limitations/implications The present study applies multicriterion approach to identify the limited barriers in BC adoption in health care. Future studies may develop the relationship and mark down the steps for implementation of BC in health-care setting of a developing economy. Empirical study can be conducted to verify the results along with selected case studies. Practical implications The present study identifies the BC adoption barriers in health-care industry. The study examines the pertinent issues in context to major support required, bottlenecks in adoption, key benefits of adoption planning and activities. The technology adoption practices are expected to provide applications such as distributed, secured medical and clinical data and patient centric systems that will enhance the efficiency of the health-care industry. Originality/value The study is among few primary studies that identify and analyze the BC adoption in health-care industry.

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The impact of diversification on task performance: Evidence from kidney transplant centers

Abstract: Research Summary: Even when diversification is beneficial, entry into a new business can negatively affect the performance of the firm's existing business(es). We examine transplant centers that diversified from kidney transplants into liver transplants, focusing on how

Cited by 14 publications

References 63 publications

Why Multibusiness Corporations Split: CEO Strategizing as the Ecosystem Evolves

Why Multibusiness Corporations Split: CEO Strategizing as the Ecosystem Evolves

Diversification, Ceo Commitment, and Firm Performance

Barriers to blockchain adoption in health-care industry: an Indian perspective

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