Research shows that the linkage between product diversification and firm performance seems to be inverted-U shaped.

Name: Research shows that the linkage between product diversification and firm performance seems to be inverted-U shaped.
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Question

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Research suggests that up to a certain level, product diversification positively affects firm performance, but beyond that level, further diversification may have a negative impact on performance. This relationship is depicted by an inverted-U shaped curve.

Research Shows That the Linkage Between Product Diversification and Firm