Abstract
Recent findings suggest that the "distinctive competence" of firms diversifying through internal developments may be quite different from that of firms which diversify by acquisition - i.e., technological superiority, for the former, an ability to attract and retain top managers of acquired firms, for the latter. An examination of the diversification histories of one firm of each type - Corning Glass Works and Sybron Corporation - provides initial support for this proposition. Implications for students, practitioners, and public regulators of diversified firms are explored.

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