Product and International Diversification: The Influence of Business and Political Network Structural Complexity

• Other Authors: Anderson, Jeffrey Eric (authoraut)
• Format: Others
• Language: English; English
• Published: Florida State University
• Subjects: Business
• Online Access: http://purl.flvc.org/fsu/fd/FSU_SUMMER2017_Anderson_fsu_0071E_14053

Despite the theoretical and strategic importance of firms’ networks, scant research has been done that focuses on how their structure as an antecedent to their diversification strategy. Drawing on resource-based view (RBV) of the firm and network theory as theoretical backdrops, this research examines the impact of the structural complexity of firms’ customer, supplier, and political networks on product and international diversification. I hypothesize that firms obtain unique knowledge, resources, capabilities, and expertise through these networks that results in superior product and international diversification. Moreover, because customer, supplier, and political networks may offer different knowledge, resources, capabilities, and expertise, it is important to examine the structural complexity of each simultaneously on diversification. Horizontal complexity refers to direct ties, vertical complexity refers to indirect ties, and spatial complexity is geographical dispersion. I measure horizontal and vertical structural complexity as the number and diversity of firms’ network connections and spatial complexity as average distance. Using archival data of 112 US based firms, I hypothesize that a greater number and diversity of customer, supplier, and political connections increase firms’ product and international diversification. Further, I hypothesize that firms’ marketing capability moderates the effect of diversification on performance and that competitive intensity moderates differently the relationships on either side of product and international diversification. The results show that the spatial complexity of suppliers and political networks positively affects international diversification. === A Dissertation submitted to the Department of Marketing in partial fulfillment of the requirements for the degree of Doctor of Philosophy. === Summer Semester 2017. === June 21, 2017. === Includes bibliographical references. === Ruby (Pui Wan) Lee, Professor Directing Dissertation; Xinling Tang, University Representative; Larry Giunipero, Committee Member; LaDonna Thornton, Committee Member.