CORPORATE IDEOLOGY, DIVERSIFICATION AND FIRM PERFORMANCE

The literature suggests that the fit between corporate culture and str ategy influences firm performance. The present study examines the mode rating effect of diversification strategy on the link between corporat e ideology, a component of culture, and firm performance. A cross-sect ional survey of the largest manufacturing firms in the United States w as conducted measuring corporate ideology and diversification strategy . A moderated regression analysis was conducted and it was found that the interaction between ideology and diversification exerts a signific ant effect on firm performance thus supporting the importance of strat egic fit.