Intra-industry Diversification Effects Under Firm-specific Contingencies on the Demand Side

Florian Smeritschnig, Jakob Muellner, Phillip C. Nell*, Martin Weiss

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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 languageEnglish
Article number101992
JournalLong Range Planning
Number of pages18
ISSN0024-6301
DOIs
Publication statusPublished - 2 Apr 2020

Bibliographical note

Epub ahead of print. Published online: 2 April 2020

Keywords

  • Across-segment product proliferation
  • Intra-industry diversification
  • Intra-industry diversification-performance relationship
  • Related diversification
  • Within-segment product proliferation

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