Management Papers

Document Type

Journal Article

Date of this Version

6-2003

Publication Source

The Journal of Industrial Economics

Volume

51

Issue

2

Start Page

121

Last Page

150

DOI

10.1111/1467-6451.00195

Abstract

In an intra-industry setting, firm-focus is found to be positively correlated with the ability of firms to produce high-value products, while the overall effect of focus on firm performance is negative due to missed demand externalities generated by a broad product offering. In particular, it is shown that U.S. mutual funds that belong to more focused fund providers outperform similar funds offered by more diversified providers. An explanation based on alignment among a provider's activities is consistent with this result. Cash inflows into fund providers—a measure related to fund provider profitability—is, however, negatively correlated with focus in fund offerings.

Copyright/Permission Statement

This is the peer reviewed version of the following article: Siggelkow, N. (2003), Why Focus? A Study Of Intra-Industry Focus Effects. The Journal of Industrial Economics, 51: 121–150., which has been published in final form at doi: 10.1111/1467-6451.00195. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms.

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Date Posted: 27 November 2017

This document has been peer reviewed.