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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Unique demand complementaries: resource relatedness and market connectedness as divers of value creation in diversification
Organization Unit
Authors
  • Jens Schmidt
  • Thomas Keil
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Academy of Management. Proceedings
Publisher Academy of Management
Geographical Reach international
ISSN 2151-6561
Volume 8
Number 1
Page Range online
Date 2010
Abstract Text The article discusses the development of a systematic framework to describe demand-based strategies to diversification and to compare it with supply-side-based strategies. The concept of unique demand complementarity is proposed to capture the idea that companies sell two or more products to the same customers, and possess the unique capability to provide value for customers who buy both products. By contrasting unique demand complementarities with cost-based economies of scope, a conceptual difference between them is found for business expansion. The difference between the performance effect of unique demand complementarities and the performance effect of economies of scope are also considered.
Digital Object Identifier 10.5465/AMBPP.2010.54499102
Other Identification Number merlin-id:8167
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