Intra-industry diversification effects under firm-specific contingencies on the demand side
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Publication type
Vlerick strategic journal articlePublication Year
2021Journal
Long Range PlanningPublication Volume
54Publication Issue
1
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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.Keyword
Related Diversification, Intra-industry Diversification, Intra-Industry Diversification-Performance Relationship, Across-Segment Product Proliferation, Within-Segment Product ProliferationKnowledge Domain/Industry
Strategyae974a485f413a2113503eed53cd6c53
10.1016/j.lrp.2020.101992