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Firm-Specific Determinants of Product Line Technology Strategies in High Technology Markets

Authors

  • Kumar R. Sarangee,

    Corresponding author
    1. Department of Marketing, Leavey School of Business, Santa Clara University, Santa Clara, California, U.S.A.
    • Correspondence to: Kumar R. Sarangee, Department of Marketing, Leavey School of Business, Santa Clara University, 500 El Camino Real, Santa Clara, CA 95053, U.S.A. E-mail: ksarangee@scu.edu

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  • Raj Echambadi

    1. Department of Business Administration, College of Business, University of Illinois at Urbana-Champaign, Champaign, Illinois, U.S.A.
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Abstract

In high technology industries, product line technology strategies are critical to firm success. However, the determinants of these product line strategies are still unclear. We suggest that a joint consideration of firm size, firm age, and pre-entry experience better explains the choice of a specific strategy. Results obtained from the personal computer industry reveal that larger firms and older firms were more likely to pursue broad product line technology strategies, whereas the oldest firms reverted to a narrow technology strategy after a particular age. Furthermore, the contingent relationships between firm size, firm age, and pre-entry experience also yielded interesting results. Copyright © 2013 Strategic Management Society.

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