Abstract
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.
Original language | English |
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Article number | 101992 |
Journal | Long Range Planning |
Volume | 54 |
Issue number | 1 |
Number of pages | 17 |
ISSN | 0024-6301 |
DOIs | |
Publication status | Published - Feb 2021 |
Bibliographical note
Published online: 2 April 2020Keywords
- Across-segment product proliferation
- Intra-industry diversification
- Intra-industry diversification-performance relationship
- Related diversification
- Within-segment product proliferation