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Company performance, diversification and risk for small and medium-sized enterprises while taking the resource-based view into account
12.12.2017 | Research
The effect of diversification on profitability and the risk of small and medium-sized enterprises were analyzed within the context of the study.
1,095 observations of small and medium-sized enterprises were collected for Austria and examined within the context of regression analyses. Diversification is imperative for small enterprises as this improves profitability. Medium-sized enterprises should strive for vertical diversification in order to achieve this goal. However, a significant risk reduction due to diversification could not be detected.