Within-industry diversification and firm performance in the presence of network externalities: Evidence from the software industry

• 成果类型: Article
• 署名作者: Tanriverdi, Hueseyin; Lee, Chi-Hyon
• 署名单位: University of Texas System; University of Texas Austin; George Mason University
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• 发表日期: 2008
• 页码: 381-397
• 关键词: MICROCOMPUTER SOFTWARE; AMERICAN MARKETS; strategy; TECHNOLOGY; compatibility; relatedness; BOUNDARIES; INNOVATION; COMPETITION; expertise

摘要

In the presence of network externalities, complementary related diversification strategies in production and consumption can be critical for achieving positive returns to within-industry diversification. This study developed this idea and tested it in a longitudinal study of 884 firms in the software industry. Results indicate that related diversification across operating system platforms and related diversification across software product-markets complement each other and mutually affect each other's marginal returns. Implementing the two strategies in combination improves sales growth and market share. Implementing only market-related diversification reduces sales growth. Implementing only platform-related diversification reduces both sales growth and market share.