Article,
Contingency organizations and shared values: Multiple logics in managing diversification
Asia Pacific Journal of Management, 18 (1): 83-99 (2001)
Abstract
Two logics of managing diversification have been suggested in the
strategic management literature. The first is a very economic and
structural approach that emphasizes the contingency fit between strategy
and structural arrangements to maximize organizational effectiveness,
while the second is a cultural approach that focuses on the use of
strong shared values to minimize opportunistic behaviors of members.
This paper empirically examines and compares the efficacy of two
approaches to managing diversification, by using Taiwanese business
groups as the sample. It is found that both approaches can lead to
satisfied economic performance and they are supplementary. Diversified
firms employing simultaneously two management logics will outperform
firms with only one logic. © 2001 Kluwer Academic Publishers.
