The concept of relatedness in diversification research: review and synthesis

Relatedness has become fundamental to the analysis of corporate diversification and a wide range of strategy research. Its broad definition, however, leaves researchers with substantial leeway in theorizing and operationalizing the relatedness construct. While recent advances have contributed to a more sophisticated understanding of how relatedness creates value, the heterogeneity of scholarly efforts leaves relatedness research in a state of terminological, conceptual, and methodological fragmentation and in need of consolidation. This article seeks to close this research gap by taking stock of the extant literature and providing the first systematic review focused exclusively on related diversification. The review identifies and analyzes 82 peer-reviewed scholarly articles published between 1982 and 2017, providing a critical assessment of these research efforts and proposing a holistic relatedness research framework that can serve as a common foundation for future scholarship. The review concludes by offering eight avenues for future research as a contribution to the theoretical literatures on diversification and resource-based theory.