Inter-divisional Domain Overlap and Product Differentiation

• Journal title : International Journal of Contents
• Volume 9, Issue 4,  2013, pp.102-112
• Publisher : The Korea Contents Association
• DOI : 10.5392/IJoC.2013.9.4.102
Title & Authors
Inter-divisional Domain Overlap and Product Differentiation
Jeong, Eui Kyo;

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-$\small{\grave{a}}$-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-$\small{\grave{a}}$-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
Product Differentiation;Inter-divisional Domain Overlap;Capabilities;
Language
English
Cited by
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