We propose that differences in the scope of related diversification in firms can be accounted,for by differences in their dynamic capabilities.In order to test this, we analyze 254 Norwegian small firm accountancy practices' possession of key dynamic capabilities including the heterogeneity of their human capital, their internal development routines, and their alliances with complementary service providers. We also analyze the influence of strategic choice, in terms of the positioning of the practice and its underlying strategic intent. While we observe no clear effects for these two latter factors, we,find that dynamic capabilities have a distinct impact on the scope of services. Copyright (C) 2008 John Wiley & Sons, Ltd.
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Univ Bayreuth, Fac Law Business & Econ, Chair Int Management, Univ Str 30, D-95447 Bayreuth, GermanyUniv Bayreuth, Fac Law Business & Econ, Chair Int Management, Univ Str 30, D-95447 Bayreuth, Germany
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Univ Pavia, Dept Econ & Management, Via San Felice 7, I-27100 Pavia, Italy
Vorarlberg Univ Appl Sci, Hochschulstr 1, A-6890 Dornbirn, AustriaUniv Pavia, Dept Econ & Management, Via San Felice 7, I-27100 Pavia, Italy
Hagen, Birgit
Tarantino, Barbara
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Univ Pavia, Dept Brain & Behav Sci, Unit Genom & Med Stat, Via A Bassi 21, I-27100 Pavia, ItalyUniv Pavia, Dept Econ & Management, Via San Felice 7, I-27100 Pavia, Italy
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Univ Pavia, Dept Econ & Management, Via San Felice 7, I-27100 Pavia, ItalyUniv Pavia, Dept Econ & Management, Via San Felice 7, I-27100 Pavia, Italy
Zucchella, Antonella
Weerawardena, Jay
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Univ Queensland, Business Sch, Colin Clark Bldg 39,St Lucia Campus, Brisbane, AustraliaUniv Pavia, Dept Econ & Management, Via San Felice 7, I-27100 Pavia, Italy
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Keio Univ, Grad Sch Business Adm, Kohoku Ku, Yokohama, Kanagawa 2238523, JapanKeio Univ, Grad Sch Business Adm, Kohoku Ku, Yokohama, Kanagawa 2238523, Japan
Isobe, Takehiko
Makino, Shige
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Chinese Univ Hong Kong, Dept Management, Shatin, Hong Kong, Peoples R ChinaKeio Univ, Grad Sch Business Adm, Kohoku Ku, Yokohama, Kanagawa 2238523, Japan
Makino, Shige
Montgomery, David B.
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Stanford Univ, Grad Sch Business, Stanford, CA 94305 USA
Singapore Management Univ, Lee Kong Chan Sch Business, Singapore 259756, SingaporeKeio Univ, Grad Sch Business Adm, Kohoku Ku, Yokohama, Kanagawa 2238523, Japan