Companies Following a Related Diversification Strategy Appear to Be Higher

question 31

True/False

Companies following a related diversification strategy appear to be higher performers and survive longer than companies with narrower scope following a pure concentration strategy.

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Definitions:

Power-Dependence Framework

A theory emphasizing the relational aspect of power, suggesting that the power of entity A over entity B is dependent on B's reliance on A for resources or outcomes.

Micro-Macro Levels

A distinction in sociology between individual (micro) behaviors and broader social processes and structures (macro).

Normative Orientations

The attitudes, beliefs, and values that inform how individuals ought to behave in social contexts, often guiding moral or ethical decisions.

Differentiation

The process of becoming or making something different, in sociology, it refers to the development of increasingly specialized roles and institutions within a society.