Spillback Effects of Expansion When Product-Types and Firm-Types Differ


Journal Article

Contrary to perspectives that credit firms with only limited abilities to undertake significant change successfully, recent research has demonstrated that firms often improve their performance after undertaking major expansion to their operations. In this paper, we build on a study by Mitchell and Singh (1993) to test for differences in expansion effects, depending on whether the new goods substitute for old products and whether the firm is a generalist or specialist participant in the industry. The analysis helps us understand when a business can undertake major change successfully. The results have implications for ecological and other definitions of the core of a business and highlight the necessity for firms to undertake changes even at considerable risk to their existing operations. © 1995, Sage Publications. All rights reserved.

Full Text

Duke Authors

Cited Authors

  • Mitchell, W; Singh, K

Published Date

  • January 1, 1995

Published In

Volume / Issue

  • 21 / 1

Start / End Page

  • 81 - 100

Electronic International Standard Serial Number (EISSN)

  • 1557-1211

International Standard Serial Number (ISSN)

  • 0149-2063

Digital Object Identifier (DOI)

  • 10.1177/014920639502100105

Citation Source

  • Scopus