The effect of within-industry diversification on firm performance: Synergy creation, multi-market contact and market structuration

• 成果类型: Review
• 署名作者: Li, SX; Greenwood, R
• 署名单位: University of Alberta
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.418
• 发表日期: 2004
• 页码: 1131-1153
• 关键词: intra-industry diversification; multi-market competition; mutual forbearance; familiarity of rivals; market structuration; firm performance

摘要

This paper examines the effect of diversification upon intra-industry performance. We propose that intra-industry diversification promises three sets of benefits, which, separately and in combination, provide firms with a competitive advantage: synergies arising from economies of scoppe; premiums from mutual forbearance enabled by multi-market competition; and efficiencies derived from market structuration. The additive and integrative effects of the first two have not been explored. The benefits of market structuration remain untheorized and thus untested. The test of our theoretical model in the Canadian general insurance industry indicates that mutual forbearance provides advantage under specified conditions, that market structuration also provides advantages, but that diversification per se does not. Copyright (C) 2004 John Wiley Sons, Ltd.