Research Regarding the Relationship Between Product Diversification and Firm Performance

Short Answer

Research regarding the relationship between product diversification and firm performance indicates that:
a. Performance may increase as firms shift from single business strategies to product-related diversification.
b. Performance may decrease as firms change from product-related to -unrelated.
c. The linkage between diversification and performance is inverted U shaped.
d. "Putting your eggs in similar baskets," has emerged as a balanced way to both reduce risk and leverage synergy.
e. All of the above.