Demand-Side Strategy, Relational Advantage and Partner-Driven Corporate Scope: The Case for Client-Led Diversification

John Kenneth Mawdsley () and Deepak Somaya ()

No 1252, HEC Research Papers Series from HEC Paris

Abstract: We advance research on corporate diversification by joining insights from the demand-side and relational views in strategy to offer a novel theory of client-led diversification. We propose that client-led diversification results from a combination of the customer-driven opportunities emphasized in the demand-side view and the creation of added value through relational assets that is a central tenet of the relational view. Furthermore, we hypothesize that suppliers’ client-specific knowledge, clients’ relational commitment to suppliers, and growth opportunities in clients’ markets (relative to the suppliers’ own markets) will magnify the client-led diversification effect. We test our hypotheses using a longitudinal dataset on patent law firms and their diversification into new domains of patent prosecution work for their corporate clients.

Keywords: corporate diversification; client-led diversification (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2018-02-19
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1252

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