Question: Firm A is heavily focused on exploiting their core competencies to gain and sustain a competitive advantage in Industry I ( 9 8 % of

Firm A is heavily focused on exploiting their core competencies to gain and sustain a competitive advantage in Industry I (98% of revenues are from this industry). Firm B is also very focused on gaining and sustaining a competitive advantage, but it operates in Industry I, II, III, and IV (revenues are evenly distributed among these industries). All of these industries are related to Firm B's core competencies. According to research on the diversification-performance link:
a) Firm A is likely to have better performance than Firm B
b) Firm B is likely to have better performance than Firm A
c) Firm A and B are likely to have equivalent performance.
d) Research on the diversification-performance link does not examine these types of differences in diversification

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