Resource partitioning and strategies in markets for technology

Abstract

By bridging literature on resource partitioning and markets for technology, this article proposes that companies that pursue a broad (focused) product strategy buy more (less) technology in the market but sign fewer (more) deals as technology suppliers. Furthermore, an alignment between product and technology market strategies increases firms’ survival chances: Companies that pursue a broad (focused) product strategy are more likely to prosper when they buy (sell) technology in the market. To test these contentions, the authors consider a population of 736 firms that entered the security software industry between 1989 and 2002.