The benefits of related and unrelated diversification strategies in the Spanish context: What is the difference that executive leadership style can make?

摘要

This article builds on the agency-stewardship approach to examine if the impact of related and unrelated diversification strategies on firm performance is contingent on the leadership style of diversifying Chief Executive Officers (CEOs) ranging from the agent model to the steward model. For this purpose, it proposes four hypotheses which are empirically tested using data from a sample of 183 Spanish firms. The findings provide new insights about the relevance of CEOs' leadership style so that a right fit between diversification type and executive leadership style seems to be crucial for firms pursuing growth and profitability benefits.