This article analyzes the effects of diversification and brand breadth on firm performance for professional service firms (PSFs). The research aim is two-fold. First, we test whether moving into ...products may put at risk the core resources that sustain PSFs’ competitive advantage. Second, we study which branding strategies best match their diversification attempts. Broad (narrow) brands characterize a branding strategy with scarce (plentiful) associations to specific product characteristics. We analyzed trademark portfolios of 47 U.S.-based management consulting firms in the 2000 to 2009 time period. Panel regression results suggest that (1) PSFs always benefit from diversification when they remain pure-service providers; (2) performance is positively related to a strategy of specialized narrow brands.
In the Spanish automobile market between 1990 and 2000, significant reductions in tariff and nontariff protections increased the complexity of the product space, through the penetration of new car ...brands and models. Acknowledging these environmental dynamics, this study details conditions in which across-niche (product breadth or intraindustry diversification) and withinniche (product depth or versioning) product proliferation exerts a positive relationship on firm performance, as well as how key relationships change according to the complexity of the product space in the industry.
This study investigates the effects of rewards in a research and development (R&D) setting in which employees’ inventive efforts lead to patented inventions. Pay for performance (PFP) for inventions ...is associated with two challenges: Low-quality inventions may be rewarded (false positives), and high-quality inventions may be overlooked (false negatives). Building on previous findings regarding the motivational and informational effects of rewards, we use social identity theory to predict that different types of inventors react differently to such false positive and false negative information. Specifically, we hypothesize that PFP that produces false positives has detrimental effects on corporate inventors with a taste for science, who are motivated by scientific prestige, reputation, and intellectual curiosity. The empirical results from survey data related to 3,995 inventor–patent pairs show that, for this particular group of inventors, false positives are associated with reduced effort in research activities and fewer interactions with peers in the R&D department. In addition, these effects are stronger when firms have many patents and thus provide less noisy information to corporate inventors.
•When penetrating foreign markets, firms could adopt a unique trademark (integration) or trademarks adapted to local cultures (responsiveness).•Trademark responsiveness is preferred when firms suffer ...high level of liability of newness and/or foreignness.•Liability of foreignness and newness depend on firm product diversification and the extent of specialized competition in the foreign market.
How do intellectual propriety rights (IPRs) help firms profit from their innovation? Innovation literature frequently turns to patents to measure innovative IPR, but more recent work shifts focus to the other side of IPR, namely, trademarks. This article therefore discusses the effects of trademark strategies when companies decide to introduce their product portfolios in a new foreign market. Entrants might opt for a common trademark across different country markets (integration) or use several country-specific trademarks (responsiveness). This empirical study exploits the quasi-natural experiment created by the tariff shock that affected Spain when it joined the European Union in the 1990s. Data from the automotive industry reveal how non-European companies that already operated in other European countries sought to enter Spain rapidly, using various trademark strategies. The product portfolio characteristics are fixed at entry, so this study can specify how and when trademark responsiveness versus integration affects firm performance. The results reveal that trademark responsiveness increases firm performance if the firms suffer high liabilities of foreignness or newness.
We present the discovery and the subsequent follow up of radio emission from SDSS J130402.36+293840.6 (J1304+2938), the candidate host galaxy of the gamma-ray burst (GRB) GRB 200716C. The galaxy is ...detected in the RACS (0.89 GHz), the NVSS, the Apertif imaging survey, and the FIRST (1.4 GHz), the VLASS (3 GHz), and in public LOFAR (130–170 MHz), WISE (3.4–22 μm), and SDSS (
z
,
i
,
r
,
g
,
u
filters) data. The luminosity inferred at 1.4 GHz is (5.1 ± 0.2) × 10
30
erg s
−1
Hz
−1
. To characterise the emission and distinguish between different components within the galaxy, we performed dedicated, high-sensitivity and high-resolution observations with the European VLBI Network (EVN) +
e
-MERLIN at 1.6 and 5 GHz. We did not detect any emission from a compact core, suggesting that the presence of a radio-loud active galactic nucleus (AGN) is unlikely, and therefore we ascribe the emission observed in the public surveys to star-forming regions within the galaxy. We confirm and refine the redshift estimate,
z
= 0.341 ± 0.004, with a dedicated Telescopio Nazionale
Galileo
(TNG) spectroscopic observation. Finally, we compiled a list of all the known hosts of GRB afterglows detected in radio and computed the corresponding radio luminosity: if GRB 200716C belongs to J1304+2938, this is the third most radio-luminous host of a GRB, implying one of the highest star-formation rates (SFRs) currently known, namely SFR ∼ 324±61
M
⊙
yr
−1
. On the other hand, through the analysis of the prompt emission light curve, recent works suggest that GRB 200716C might be a short-duration GRB located beyond J1304+2938 and gravitationally lensed by an intermediate-mass black hole (IMBH) hosted by the galaxy. Neither the public data nor our Very Long Baseline Interferometry (VLBI) observations can confirm or rule out the presence of an IMBH acting as a (milli-)lens hosted by the galaxy, a scenario still compatible with the set of radio observations presented in this work.
Transitional millisecond pulsars are an emerging class of sources that link low-mass X-ray binaries to millisecond radio pulsars in binary systems. These pulsars alternate between a radio pulsar ...state and an active low-luminosity X-ray disc state. During the active state, these sources exhibit two distinct emission modes (high and low) that alternate unpredictably, abruptly, and incessantly. X-ray to optical pulsations are observed only during the high mode. The root cause of this puzzling behaviour remains elusive. This paper presents the results of the most extensive multi-wavelength campaign ever conducted on the transitional pulsar prototype, PSR J1023+0038, covering from the radio to X-rays. The campaign was carried out over two nights in June 2021 and involved 12 different telescopes and instruments, including
XMM-Newton
, HST, VLT/FORS2 (in polarimetric mode), ALMA, VLA, and FAST. By modelling the broadband spectral energy distributions in both emission modes, we show that the mode switches are caused by changes in the innermost region of the accretion disc. These changes trigger the emission of discrete mass ejections, which occur on top of a compact jet, as testified by the detection of at least one short-duration millimetre flare with ALMA at the high-to-low mode switch. The pulsar is subsequently re-enshrouded, completing our picture of the mode switches.
The paper analyses the birth of the encryption software industry (ESI), a new niche in the software industry. Using a Chandlerian perspective, this work reports the main facts about firm entry and ...growth, with a particular focus on start-up strategies and actions.
Since scale economies do not play a major role in ESI, the paper investigates the different sources of firm competitive advantages.
This work shows that innovation and product differentiation, along with investments in co-specialised assets, are variables strongly correlated to young firm probability to survive and grow. In doing so, we have collected highly detailed information on product introduction, US patents granted, worldwide alliances and biographical data of firm founders.
Organization scholars have recently studied the internal challenges and opportunities faced by companies that combine business and social logics (i.e., social business hybrids). By adopting a ...demand-side perspective, this paper addresses the implications of hybridity for strategic choices with products and businesses by focusing on the role of social business hybrids’ customers. In the conceptual framework, social identity theory explains how hybridity generates both positive and negative demand-side externalities. Thus, hybridity can be a source of competitive advantage in the marketplace, but also create hurdles to firms’ ability to scale up their business. Diversification represents a potential choice that simultaneously generates growth, preserves hybridity, and avoids negative demand-side externalities. This paper analyzes the optimal type, timing, and scope of such diversification.
Transaction costs strongly influence diversification dynamics, as predicted by resource theory. A mainstream view links the profitability of diversification with the existence of transaction costs ...that prevent a firm from trading in fungible, scale-free resources. This study applies a neo-Penrosian perspective to transaction costs, with the notion that diversification may be driven by the redeployment of non-scale-free resources. An empirical analysis, using tax changes in the drink sector as a measure of exogenous demand variation, offers results consistent with the prediction that redeployment is particularly relevant when retailing is concentrated and single-product competition within a focal product niche (e.g., beer) is fragmented. This study also measures redeployment across a portfolio of a multiniche firm when changes in its sales-growth rates for a particular product niche might imply contrasting changes in other product niches. The resulting evidence is consistent with predictions that demand uncertainty, and transaction costs create viable redeployment opportunities for multiniche companies.
When firms tap external knowledge sources, they risk spillovers of their own internal knowledge. If the value of this potential loss and the imitation capabilities of neighboring organizations are ...high, fear of imitation might overshadow the benefits of openness. In such situations, firms might voluntarily reduce their use of external sources, relative to knowledge available internally. Data pertaining to 4,623 European inventions and direct information about the use of knowledge sources confirm that firms reduce their use of external, relative to internal, knowledge when they conduct costly research projects in locations characterized by high levels of absorptive capacity in a specific technology. This study also reveals fear of imitation as a mediating factor of this behavior.
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