초록

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Abstract ▼ AI-Helper

This study examines fits among environment, structure, and decision-making processes and the impact of fits among these three constructs on firm's performance. Unlike other studies on these issues, this paper explores the applicability of diversification theories developed from the perspective of d...

This study examines fits among environment, structure, and decision-making processes and the impact of fits among these three constructs on firm's performance. Unlike other studies on these issues, this paper explores the applicability of diversification theories developed from the perspective of divisions to the context of subsidiaries of diversified firms. Questionnaire obtained from 258 subsidiaries of 50 Korean diversified enterprises (Chaebol) are used for empirical analyses and hypotheses testing. Findings are as follow. First, the conflicting relationship between external fit and internal fit exists only when the firm is small and is not member of the diversified firms. Second, for the subsidiaries with the diversified firms external fit does not guarantee better performance. Third, for the subsidiaries within the diversified firms to achieve high performance it is necessary to create synergistic effects at the corporate HQ, as well as external fit or internal fit.