Long Island University, CW Post Campus 720 Northern Blvd.Brookville, NY, 11548
In diversified firms, resource relatedness has often been suggested as having positive effects on corporate performance. This paper proposes, however, an inverted U relationship between technological relatedness and corporate R&D performance. In addition, institutional ownership and CEO ownership is proposed to moderate the effects of technological relatedness on R&D performance by influencing CEOs’ tendencies to take risks.
R&D, technological relatedness, diversification, institutional ownership, CEO ownership
