Nguyen, T and Cai, X (2016) Value-Enhancing Learning from Industry-wide Diversification Experience. British Journal of Management, 27 (2). pp. 323-337. ISSN 1045-3172
Abstract
Diversification is an important strategic decision and a rare event. By definition, when undertaking a new diversification, a firm will not have direct internal experience of the venture. In this regard, external experience of similar diversifications provides a valuable lesson pool for the focal manager. While there are many studies of internal learning in organizational learning literature, research on external learning is still scarce. This paper proposes a theoretical framework for external experiential learning and applies it to study the effect of industry experience on diversification value. We report the novel finding of a cubic relationship between external learning from industry experience and diversification value. This indicates that industry experience matters to the outcomes of strategic decisions, but that the effect of this external experience on learning is conditional upon certain characteristics of the experience: namely specificity and heterogeneity.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 British Academy of Management. This is the peer reviewed version of the following article: "Nguyen, T. and Cai, C. X. (2015), Value-enhancing Learning from Industry-wide Diversification Experience. British Journal of Management" which has been published in final form at http://dx.doi.org/10.1111/1467-8551.12151. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Keywords: | Experience; organizational learning; diversification value |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 16 Nov 2015 16:05 |
Last Modified: | 10 Dec 2017 01:38 |
Published Version: | https://dx.doi.org/10.1111/1467-8551.12151 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/1467-8551.12151 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:91859 |