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

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• dc.contributor.author Sohl, Timo
• dc.contributor.author McCann, Brian T.
• dc.contributor.author Vroom, Govert
• dc.date.accessioned 2023-07-19T06:36:19Z
• dc.date.available 2023-07-19T06:36:19Z
• dc.date.issued 2022
• dc.description.abstract 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.
• dc.description.sponsorship 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.
• dc.format.mimetype application/pdf
• dc.identifier.citation Sohl T, McCann BT, Vroom G. Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship. Long Range Plann. 2022;55(6):102215. DOI: 10.1016/j.lrp.2022.102215
• dc.identifier.doi http://dx.doi.org/10.1016/j.lrp.2022.102215
• dc.identifier.issn 0024-6301
• dc.identifier.uri http://hdl.handle.net/10230/57615
• dc.language.iso eng
• dc.publisher Elsevier
• dc.relation.ispartof Long Range Planning. 2022;55(6):102215.
• dc.relation.projectID info:eu-repo/grantAgreement/ES/2PE/PID2020-115660GB-100
• dc.rights © 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/).
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.rights.uri http://creativecommons.org/licenses/by/4.0/
• dc.subject.keyword Business model
• dc.subject.keyword Demand relatedness
• dc.subject.keyword Demand-side synergies
• dc.subject.keyword Diversification
• dc.subject.keyword Firm performance
• dc.title Business model diversification: demand relatedness, entry sequencing, and curvilinearity in the diversification-performance relationship
• dc.type info:eu-repo/semantics/article
• dc.type.version info:eu-repo/semantics/publishedVersion