TY - JOUR
T1 - Intra-industry Diversification Effects Under Firm-specific Contingencies on the Demand Side
AU - Smeritschnig, Florian
AU - Muellner, Jakob
AU - Nell, Phillip C.
AU - Weiss, Martin
N1 - Published online: 2 April 2020
PY - 2021/2
Y1 - 2021/2
N2 - How do firm-specific, demand-related factors influence the relationship between intra-industry diversification (IID) and performance? Recent findings regarding the performance effects of IID depict a complex picture with curvilinear relationships and several contingencies. However, firm-specific contingencies on the demand side have remained unexplored. We analyze how IID relates to firm performance (market share) in the German automotive industry using panel data between 1999 and 2008. We specifically focus on a firm's high-quality brand image as a demand-side contingency. We find support for our hypotheses of complex curvilinear relationships as well as for moderating effects of brand quality. Our results have significant theoretical implications for the IID literature.
AB - How do firm-specific, demand-related factors influence the relationship between intra-industry diversification (IID) and performance? Recent findings regarding the performance effects of IID depict a complex picture with curvilinear relationships and several contingencies. However, firm-specific contingencies on the demand side have remained unexplored. We analyze how IID relates to firm performance (market share) in the German automotive industry using panel data between 1999 and 2008. We specifically focus on a firm's high-quality brand image as a demand-side contingency. We find support for our hypotheses of complex curvilinear relationships as well as for moderating effects of brand quality. Our results have significant theoretical implications for the IID literature.
KW - Across-segment product proliferation
KW - Intra-industry diversification
KW - Intra-industry diversification-performance relationship
KW - Related diversification
KW - Within-segment product proliferation
KW - Related diversification
KW - Intra-industry diversification
KW - Intra-industry diversification-performance relationship
KW - Across-segment product proliferation
KW - Within-segment product proliferation
U2 - 10.1016/j.lrp.2020.101992
DO - 10.1016/j.lrp.2020.101992
M3 - Journal article
AN - SCOPUS:85083003924
SN - 0024-6301
VL - 54
JO - Long Range Planning
JF - Long Range Planning
IS - 1
M1 - 101992
ER -