We address the issue of promoting synergies in divisionalized, diversified firms from the perspectives of the resource-based view and recent work on corporate headquarters, thus connecting the analysis of sustained competitive advantage with organizational issues. We begin by clarifying the concept of synergy, and argue that the concept of complementarity is particularly likely to capture most meanings of synergy. Furthermore, we argue that the raison d'etre of the corporate headquarters lies in their synergy-creating potential. The reasoning is illustrated with examples from Danish corporations, specifically Danfoss and Bang & Olufsen.
|Place of Publication||Copenhagen|
|Publisher||Institut for Industriøkonomi og Virksomhedsstrategi, Handelshøjskolen i København|
|Number of pages||33|
|Publication status||Published - 1997|
|Series||Working Paper / Department of Industrial Economics and Strategy. Copenhagen Business School|
Foss, N. J., & Iversen, M. (1997). Promoting Synergies in Multiproduct Firms toward a Resource-based View. Institut for Industriøkonomi og Virksomhedsstrategi, Handelshøjskolen i København. Working Paper / Department of Industrial Economics and Strategy. Copenhagen Business School, No. 1997-12