Knowledge relatedness, dominant logic and firm performance: a strategic cognition perspective

Abstract

Drawing on a strategic cognition perspective, we provide new conceptual arguments about the role of management's dominant logic in explaining the effects of knowledge relatedness on financial firm performance. We develop a conceptual framework and develop propositions to argue that a homogeneous dominant logic positively moderates the performance effects of product knowledge relatedness and managerial knowledge relatedness, but this logic negatively moderates the effect of customer knowledge relatedness. These arguments point to a trade-off, which is essential for academics and practitioners and which may help to reconcile varying earlier research findings. The results underscore the interdependencies between strategy process and strategy content characteristics.