HKUEMS :: Event Details

Seminar on Strategy & IB by Mr. Heejung Byun (Sept 29, Friday)
posted by School of Business for HKU and Public
Event Type: Public Lecture/Forum/Seminar/Workshop/Conference/Symposium
Event Nature: Business & Economics

Event Details

Strategy & IB Seminar

When is the Client Not Right? Performance Implication of Client-led Diversification.

Mr. Heejung Byun
PhD Candidate
University of Maryland


I examine the performance of diversification driven by embedded client ties, a phenomenon I label "client-led diversification." In contrast to existing models of diversification that focus on supply-side capabilities and implicitly assume arm's-length transaction, I focus on diversifications intended to cater to an existing client's needs and its adverse effect on firm performance. In doing so, I explore the potential tension embedded client ties create vis-à-vis firm capabilities and argue that client-led diversification may cause a) diseconomies of scope, b) an erosion of firm capabilities, and c) over-embeddedness to the client. I find support for the negative impact of client-led diversifications on performance and its mechanisms in the context of the U.S. federal lobbying firms between 1999 and 2008. I exploit the exogenous creation of the "Homeland Security" issue market after the 9/11 terrorist attack to identify the effect of client-led diversification on performance.

Date/Time29/09/2017 10:30-12:00
VenueKK1236, 12/F., K.K. Leung Building, The University of Hong Kong

Registration Instruction

Registration is not required.

Contact Information

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