Corporate Diversification and Firm Performance: Theoretical Boundaries and Proposed Research Agenda

Abstract

By applying a meta-narrative review approach and thematic analysis, 202 articles over the period 2000-2020 were evaluated to identify and collate the literature on corporate diversification and firm performance into six theoretical perspectives: industrial economics, resource-based view, agency theory, financial perspective, organizational learning and institutional perspective. A novel research agenda is proposed that suggests two alternative explanations: the geopolitical and historical perspectives. It is concluded that these should be part to the study of corporate diversification and firm performance.