ABSTRACT
In earlier chapters, we have discussed rationales for firms’ diversification (Chapters 4-6) and ways to manage diversified firms (Chapters 7-9). In this chapter, we address the means by which firms can implement a diversification strategy. Specifically, the objective of this chapter is to answer a key question: How can firms become diversified? Answering this question is critical, because the choice of a proper entry mode can reduce the chances and hazards of failure (Chang and Singh, 1999) and increase the firm’s profitability (Chang, 1996).
