Working Paper Series, Department of Industrial Economics & Strategy, Copenhagen Business School
No 97-12:
Promoting Synergies in Multiproduct Firms: Toward a Resource-based View.
Nicolai J. Foss and Mikael Iversne
Abstract: We address the issue of promoting synergies in
divisionalized, diversified firms from the perspectives of the
resource-based view and recent work on corporate headquarters, thus
connecting the analysis of sustained competitive advantage with
organizational issues. We begin by clarifying the concept of synergy, and
argue that the concept of complementarity is particularly likely to capture
most meanings of synergy. Furthermore, we argue that the raison d'etre of
the corporate headquarters lies in their synergy-creating potential. The
reasoning is illustrated with examples from Danish corporations,
specifically Danfoss and Bang & Olufsen.
Keywords: competitive advantage; synergy; coroprate headquarter; (follow links to similar papers)
JEL-Codes: L21; L22; M2; (follow links to similar papers)
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