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Unique demand complementaries: resource relatedness and market connectedness as divers of value creation in diversification

Schmidt, Jens; Keil, Thomas (2010). Unique demand complementaries: resource relatedness and market connectedness as divers of value creation in diversification. Academy of Management. Proceedings:online.

Abstract

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.

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Scope:Discipline-based scholarship (basic research)
Language:English
Date:2010
Deposited On:05 Sep 2019 11:08
Last Modified:29 May 2025 05:49
Publisher:Academy of Management
ISSN:2151-6561
OA Status:Closed
Publisher DOI:https://doi.org/10.5465/AMBPP.2010.54499102
Other Identification Number:merlin-id:8167
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