Abstract
Past studies on multipoint competition have mainly focused on the effect of multipoint contact in the product-market domain on firm behaviors in product markets. In this study, we argue that multipoint contact in product markets exerts great influence on a firm’s behavior in the technological domain. Our analysis of 211 semiconductor firms reveals that the degree of multipoint contact between a firm and a rival in product markets has an inverted U-shaped relationship with the degree of the firm’s expansion into the rival’s technological areas. We further showed that the firm’s relative capacity to the rival’s with respect to their market share and technological statuses and alliances between two firms moderate the effect of multipoint contact in product markets on the firm’s expansion. We discuss implications for theory and practice.
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