Japan`s largest textile firms have adopted the strategy of diversification into new product markets, since they started … impacts on the direction of diversification. Our panel data analyses show that different diversification paths actually … yielded contrasting performances. The outcomes also suggest that the effectiveness of specific diversification schemes was …

This article examines the industry diversification of the 142 largest Japanese manufacturers in 1973-1998. We find that … sample firms steadily increased diversification. Despite the increase, the relatedness of their business measured in three … between diversification and firm performance is negative. Firms can mitigate the negative impact of diversification on …

more diversified strategy. Overall, our study provides novel evidence on the benefit of diversification by demonstrating … the importance of geographic scope and diversification at times of crises. Specifically, we show corporate diversification …, diversification could even become essential for larger firms that are expected by the market to be more diversified. …