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The Effects of Technological Relatedness and Ownership Structure on R&D Performance
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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.
Keywords
R&D, Technological Relatedness, Diversification, Institutional Ownership, CEO Ownership
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