Intra-industry diversification effects under firm-specific contingencies on the demand side

Florian Smeritschnig, Jakob Müllner, Phillip C. Nell, Martin Weiss

Publication: Scientific journalJournal articlepeer-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
JournalLong Range Planning
DOIs
Publication statusPublished - 2020

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 509018 Knowledge management
  • 505027 Administrative studies
  • 502052 Business administration
  • 506009 Organisation theory
  • 502044 Business management
  • 507026 Economic geography

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