Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship

This study integrates research on business model diversification (BMD) and demand-side theory to examine the relationship of BMD to performance and the sequencing of business model additions. We begin by explaining and demonstrating that the overall degree of BMD has an inverted U-shaped relationshi...

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Detalles Bibliográficos
Autores: Sohl, Timo, McCann, Brian T., Vroom, Govert
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:10230/57615
Acceso en línea:http://hdl.handle.net/10230/57615
http://dx.doi.org/10.1016/j.lrp.2022.102215
Access Level:acceso abierto
Palabra clave:Business model
Demand relatedness
Demand-side synergies
Diversification
Firm performance
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spelling Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationshipSohl, TimoMcCann, Brian T.Vroom, GovertBusiness modelDemand relatednessDemand-side synergiesDiversificationFirm performanceThis study integrates research on business model diversification (BMD) and demand-side theory to examine the relationship of BMD to performance and the sequencing of business model additions. We begin by explaining and demonstrating that the overall degree of BMD has an inverted U-shaped relationship with firm performance. We next highlight the particular role that demand relatedness plays in BMD. We first provide evidence that the inverted U-shaped relationship flattens in times of financial shocks, consistent with arguments that the benefits of BMD from consumers’ willingness-to-pay for simultaneous use of multiple business models may diminish during shocks. Second, we argue that firms tend to sequence the addition of new business models based on demand relatedness, and we provide evidence that the degree of demand relatedness between a core and a target business model enhances the likelihood of diversification into that target business model.The authors would like to acknowledge financial support from the Ministerio de Economía y Competitividad, Grant/Award Number: PID2020-115660 GB-100 and Agència de Gestió d'Ajuts Universitaris i de Recerca, Grant/Award Number: 2017 SGR 1244.Elsevier202320232022info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttp://hdl.handle.net/10230/57615http://dx.doi.org/10.1016/j.lrp.2022.102215reponame:Recercat. Dipósit de la Recerca de Catalunyainstname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)InglésLong Range Planning. 2022;55(6):102215.info:eu-repo/grantAgreement/ES/2PE/PID2020-115660GB-100© 2022 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).http://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:recercat.cat:10230/576152026-05-29T05:05:01Z
dc.title.none.fl_str_mv Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
title Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
spellingShingle Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
Sohl, Timo
Business model
Demand relatedness
Demand-side synergies
Diversification
Firm performance
title_short Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
title_full Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
title_fullStr Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
title_full_unstemmed Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
title_sort Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
dc.creator.none.fl_str_mv Sohl, Timo
McCann, Brian T.
Vroom, Govert
author Sohl, Timo
author_facet Sohl, Timo
McCann, Brian T.
Vroom, Govert
author_role author
author2 McCann, Brian T.
Vroom, Govert
author2_role author
author
dc.subject.none.fl_str_mv Business model
Demand relatedness
Demand-side synergies
Diversification
Firm performance
topic Business model
Demand relatedness
Demand-side synergies
Diversification
Firm performance
description This study integrates research on business model diversification (BMD) and demand-side theory to examine the relationship of BMD to performance and the sequencing of business model additions. We begin by explaining and demonstrating that the overall degree of BMD has an inverted U-shaped relationship with firm performance. We next highlight the particular role that demand relatedness plays in BMD. We first provide evidence that the inverted U-shaped relationship flattens in times of financial shocks, consistent with arguments that the benefits of BMD from consumers’ willingness-to-pay for simultaneous use of multiple business models may diminish during shocks. Second, we argue that firms tend to sequence the addition of new business models based on demand relatedness, and we provide evidence that the degree of demand relatedness between a core and a target business model enhances the likelihood of diversification into that target business model.
publishDate 2022
dc.date.none.fl_str_mv 2022
2023
2023
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10230/57615
http://dx.doi.org/10.1016/j.lrp.2022.102215
url http://hdl.handle.net/10230/57615
http://dx.doi.org/10.1016/j.lrp.2022.102215
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Long Range Planning. 2022;55(6):102215.
info:eu-repo/grantAgreement/ES/2PE/PID2020-115660GB-100
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Recercat. Dipósit de la Recerca de Catalunya
instname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
instname_str Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
reponame_str Recercat. Dipósit de la Recerca de Catalunya
collection Recercat. Dipósit de la Recerca de Catalunya
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,811543

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