Strategic Management Quarterly

Organizational Network Effect On Diversification Strategies
Ela Ozkan-Canbolat

Abstract
The purpose of this paper is to explain the relationship of the Turkish Business Groups’ diversification strategies and their social network qualities. The aim of this article is to reveal whether business groups that are different in using network qualities have also differentiated in their diversification strategies. Theoretical framework of the study intends to determine the position of purposive network members with respect to central and periphery, their role in spanning structural holes and their diversification strategies. To this end, business groups are compared with respect to their entrance to different sectors and their centrality position and their brokerage roles. While explaining the relationship between organizations location with respect to the center and their diversification strategies, TUSIAD (Turkish Industry and Business Association) is selected for assembling social network for Turkish business groups-holdings. In this study, CHAD Model; Decision tree analysis is selected for explaining the model. As a result, it has been found that business groups which are located at central and also have higher brokerage rates are differentiated in the extent of diversification strategies.

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