This paper investigates the relationship between technological diversification and firm growth and the moderating role of core-technology competence in the relationship.
Technological diversification has an inverted U-shaped relationship with firm growth.
Core-technology competence moderates the relationship, by attenuating the harmful effect of excessive technological diversification.
High core-technology competence attenuates the harmful effect for unrelated (or broad) technological diversification greater than for related (or focused) technological diversification.