Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices

Døving, Erik and Gooderham, Paul (2008) Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices. Strategic Management Journal , 29 (8). pp. 841-857. ISSN 1097-0266

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Official URL: http://dx.doi.org/10.1002/smj.683

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Abstract

We propose that differences in the scope of related diversification in firms can be accounted for by differences in their dynamic capabilities. In order to test this, we analyze 254 Norwegian small firm accountancy practices' possession of key dynamic capabilities including the heterogeneity of their human capital, their internal development routines, and their alliances with complementary service providers. We also analyze the influence of strategic choice, in terms of the positioning of the practice and its underlying strategic intent. While we observe no clear effects for these two latter factors, we find that dynamic capabilities have a distinct impact on the scope of services.

Item Type:Article
Research Areas:Business School > Leadership, Work and Organisations
ID Code:7618
Deposited On:12 Apr 2011 07:49
Last Modified:24 Oct 2014 15:48

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