Concepts of synergy - Towards a clarification

This paper explores the concepts of synergy, economies of scope and complementary in an attempt to refine the concept of synergy. The paper develops a taxonomi consisting of four kinds of synergies: 1)The static and subadditive synergies consisting of economies of scope and asset amortization benefits, 2) the static and superadditive synergies known from the treatment by Ansoff (1965), 3) the dynamic and subadditive synergies which could be termed competence amortization benefits and 4) the dynamic and superadditive synergies consisting of complementarities between different activities or competences. These four kinds are then discussed and illustrated by examples from the Danish companies Danfoss and Bang & Olufsen. Acknowledgements I am grateful for the many useful and enlightening comments by Nicolai J. Foss and Jens Frøslev Christensen. All remaining errors and lack of consistency is, off course, entirely due to my own inadequatecy.