|
Archive@NYU >
NET Institute >
NET Institute Working Papers Series >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/31398
|
| Title: | Spread Too Thin: Uncertainty Shocks and Diseconomies of Scope |
| Authors: | Natividad, Gabriel
Sorenson, Olav |
| Issue Date: | 20-Dec-2011 |
| Series/Report no.: | NET Institute Working Papers;11_04 |
| Abstract: | Although many streams of literature have recognized that firms with
broader scope often underperform those with greater focus, relatively
little research has examined the mechanisms that might account for these
diseconomies of scope. One potential mechanism is that uncertainty
shocks |events or short-term periods that upset the normal course of
business| place unusual demands on the limited attention of managers.
When managers of larger, more diverse rms allocate their time and
organizational resources to address these events, they necessarily
divert attention and resources away from other businesses, thereby
converting these uncertainty shocks in one part of the organization to
performance shocks in other parts of it. An empirical examination of the
relationship between the distribution of lms in theaters and videos for
sale demonstrates that uncertainty shocks in theatrical distribution
become performance shocks in the video market and that the magnitude of
these eects increases for larger, more diversied rms. |
| URI: | http://hdl.handle.net/2451/31398 |
| Appears in Collections: | NET Institute Working Papers Series
|
Files in This Item:
| File |
Description |
Size | Format |
|---|
| 11_04.pdf | NET Institute Working Paper 11_04 | 566.72 kB | Adobe PDF | View/Open |
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
