Inter-divisional Domain Overlap and Product Differentiation
INTERNATIONAL JOURNAL OF CONTENTS / INTERNATIONAL JOURNAL OF CONTENTS, (P)1738-6764; (E)2093-7504
2013, v.9 no.4, pp.102-112
https://doi.org/10.5392/ijoc.2013.9.4.102
Jeong, Eui Kyo
Jeong,,
E.
K.
(2013). Inter-divisional Domain Overlap and Product Differentiation. , 9(4), 102-112, https://doi.org/10.5392/ijoc.2013.9.4.102
Abstract
Using data on the U.S. automobile industry between 1979 and 1999, we have investigated the impact of inter-divisional domain overlap on a division's product differentiation vis-$\grave{a}$-vis sister divisions. The results show that the higher the level of inter-divisional domain overlap, relative to the focal division's own domain, the higher the chances of locating a new product closer to the existing products of a sister division, thereby decreasing product differentiation vis-$\grave{a}$-vis this sister division. We argue that this is due to a high level of similar capabilities between the two divisions and the division with less distinctive capabilities may have little choice but to launch a new product that is close to the products of the other division.
- keywords
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Product Differentiation,
Inter-divisional Domain Overlap,
Capabilities
ISSN : 1738-6764
