The DOI matches its Crossref record.
Within-Industry Diversification and Firm Performance in the Presence of Network Externalities: Evidence From the Software Industry
Abstract
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.
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Citations
Cited by
Platform competition: Strategic trade‐offs in platform markets
Cennamo, C., & Santalo, J. (2013) · Strategic Management Journal · doi:10.1002/smj.2066 · Cited by 780
Competing in Digital Markets: A Platform-Based Perspective
Cennamo, C. (2021) · Academy of Management Perspectives · doi:10.5465/amp.2016.0048 · Cited by 487
Chen, L., Tong, T. W., Tang, S., & Han, N. (2022) · Journal of Management · doi:10.1177/01492063211045023 · Cited by 345
Yu, W., Ramanathan, R., & Nath, P. (2017) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2016.12.005 · Cited by 308
Park, Y., Fiss, P. C., & El Sawy, O. A. (2020) · MIS Quarterly · doi:10.25300/misq/2020/13879 · Cited by 300
Metadata
- Authors
- Tanriverdi̇, H., & Lee, C.-H.
- Venue
- Academy of Management Journal
- Publisher
- Academy of Management
- Published
- 2008-04
- Volume
- 51
- Issue
- 2
- Pages
- 381-397
- ISSN
- 0001-4273 (ISSN-L)
- 1948-0989
- OpenAlex
- W2046877799
- Cited by
- 201
- References
- 0
- FWCI
- 34.62
- Type
- journal article
- Language
- en
- Open access
- closed
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- Tanriverdi̇, H., & Lee, C.-H. (2008). Within-Industry Diversification and Firm Performance in the Presence of Network Externalities: Evidence From the Software Industry. Academy of Management Journal. https://doi.org/10.5465/amj.2008.31767300
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.