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Ripples in the Pond: Product Portfolio Reconfiguration and Dynamism in the Competitive Environment

This article shows that firms’ product-portfolio reconfigurations can create ripple effects across their rival networks: moderate reconfigurations raise product-market dynamism, but very large reconfigurations reduce rivals’ motivation to follow (an inverted-U relationship). The ripple is stronger when the initiating firm is customer-oriented and when rivals have financial slack.

Authors & affiliations:

  • Christopher Jung (Western University)
  • Mark Mallon (Florida Atlantic University – College of Business)
  • Stav Fainshmidt (Florida International University).

Read the full paper here.

Author