ORGANIZATIONAL LEARNING AND DIVERSIFICATION

Employing concepts of lateral and longitudinal learning, we examined t he dissolution of 462 expansions of Dutch firms, both acquisitions and new ventures. We interpreted the endurance of an expansion as reflect ing success. Results show that expansions were more persistent when re lated to a firm's core skills, fully owned, and the result of acquisit ion rather than internal development. Expansions were also likely to l ast longer if a firm's prior diversification activity level was high.