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Size, differentiation and the performance of Dutch daily newspapers

Author

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  • Christophe Boone
  • Glenn R. Carroll
  • Arjen van Witteloostuijn

Abstract

We demonstrate how organizational ecology can contribute to strategic management and managerial practice by using resource-partitioning theory to make predictions with respect to: (i) the short-run performance (i.e. growth and profitability) consequences of broad (generalist) vis-ý-vis focus (specialist) strategies; (ii) the detrimental performance implications of a particular instance of being strategically 'stuck in the middle'; and (iii) the performance consequences of organizational size differences. We hypothesize that these effects depend on the position of the organization in resource space. These predictions are tested by estimating models of growth and profitability, using data on Dutch generalist (national) and specialist (regional) newspapers from 1968 to 1994. The findings show that resource-partitioning theory provides a dynamic backbone to understand the performance consequences of different generic strategies and organizational size positions. Copyright 2004, Oxford University Press.

Suggested Citation

  • Christophe Boone & Glenn R. Carroll & Arjen van Witteloostuijn, 2004. "Size, differentiation and the performance of Dutch daily newspapers," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(1), pages 117-148, February.
    • Handle: RePEc:oup:indcch:v:13:y:2004:i:1:p:117-148
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    Citations

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    Cited by:

    1. Cordes, Christian & Richerson, Peter J. & Schwesinger, Georg, 2010. "How corporate cultures coevolve with the business environment: The case of firm growth crises and industry evolution," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 465-480, December.
    2. César García-Díaz & Arjen van Witteloostuijn & Gábor Péli, 2015. "Micro-Level Adaptation, Macro-Level Selection, and the Dynamics of Market Partitioning," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-27, December.
    3. Ilaria Galavotti, 2019. "Firm-level recent profitability and acquisition performance: exploring competing theoretical perspectives," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 319-345, September.
    4. Christian Cordes & Tong-Yaa Su & Pontus Strimling, 2015. "Going Through a Crisis: Firm Devekopment and Firm SIze Distributions," Papers on Economics and Evolution 2015-06, Philipps University Marburg, Department of Geography.
    5. Jaime Gómez & Raquel Orcos & Sergio Palomas, 2014. "The evolving patterns of competition after deregulation: the relevance of institutional and operational factors as determinants of rivalry," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 905-933, September.
    6. Christian Cordes & Tong-Yaa Su & Pontus Strimling, 2019. "A critical human group size and firm size distributions in industries," Journal of Bioeconomics, Springer, vol. 21(2), pages 123-144, July.
    7. Christian Cordes & Peter Richerson & Georg Schwesinger, 2014. "A corporation’s culture as an impetus for spinoffs and a driving force of industry evolution," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 689-712, July.
    8. BOONE, Christophe & WEZEL, Filippo Carlo & VAN WITTELOOSTUIJN, Arjen, 2006. "An ecological theory of population-level organizational diversity," Working Papers 2007003, University of Antwerp, Faculty of Business and Economics.
    9. Aleid Elizabeth Brouwer & Arjen Van Witteloostuijn & Christophe Boone, 2006. "The Dynamics of Economic Performance and Organizational Diversity. An Empirical Study in Zwolle, the Netherlands, 1850-1914," ERSA conference papers ersa06p112, European Regional Science Association.

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