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.
Österreichische Systematik der Wissenschaftszweige (ÖFOS)
- 509018 Wissensmanagement
- 505027 Verwaltungslehre
- 502052 Betriebswirtschaftslehre
- 506009 Organisationstheorie
- 502044 Unternehmensführung
- 507026 Wirtschaftsgeographie