Can the Survivor Principle Survive Diversification

摘要: The survivor principle holds that the competitive process weeds out inefficient firms, so hypotheses about efficient behavior can be tested by observing how firms actually behave. This underlies a large body of empirical work in strategy, economics, and management. But do markets display what is efficient? Is reliable? We evaluate context corporate diversification, showing survivor-based measures inter-industry relatedness are good predictors firm’s decisions to exit particular lines business, even when controlling for other firm industry characteristics affect decision withdraw from one or another. argue further his measure captures an important aspect economic efficiency, not simply firms’ desire legitimacy imitation, attempts temper multi-market competition. Hence confidence warranted, at least this context.