Company performance, diversification and risk for small and medium-sized enterprises while taking the resource-based view into account

1,095 observations of small and medium-sized enterprises were collected for Austria and examined within the context of regression analyses. Diversification is imperative for small enterprises as this improves profitability. Medium-sized enterprises should strive for vertical diversification in order to achieve this goal. However, a significant risk reduction due to diversification could not be detected.