NARROW-SCOPE STRATEGIES AND FIRM PERFORMANCE: AN EMPIRICAL INVESTIGATION

Julio O. De Castro

University of Colorado Boulder, CO

James J. Chrisman

University of Calgary Calgary , Canada


Abstract

This study examines the performance of two samples of narrow-scope manufacturing firms competing in concentrated, mature industries. The conceptualization and measurement of scope is discussed, and hypotheses regarding broad- and narrow- scope are tested. Results indicate broad-scope firms outperform narrow-scope firms but also showed that certain types of narrow-scope strategies can be effective.

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