Technological Diversification and Organisational Performance – A Meta-Analysis

The level of technological diversification is a key determinant of organisations’ ability to respond to change and to shape innovation. Over the last years, an increasing body of knowledge has investigated the antecedents, contingencies and performance consequences of technological diversification. While most research finds increased diversification is associated with higher organisational performance, the conditions under which such effects are particularly pronounced are less clear. This meta-analysis synthesises 110 independent samples that collectively cover observations of 133,814 organisations between 1950 to 2018. Our results show that the technological diversification-performance relationship is positive, yet significantly moderated by the type of technological diversification and the macro-environment the organisation operates in.