"Status transfer between markets: Who, Where and How"

Abstract

It has been shown that status can be transferred among partners, but few studies look into status transfer between markets and its consequences. This paper studies status transfer between markets and propose a conceptual framework of status transfer strategies under different contexts. A firm with high status in its original markets is more likely to transfer status to a new market, and a firm is more likely to transfer status to a highly related market. To effectively transfer status between markets, a firm should utilize different strategies based on the its status in original market and also consider market relatedness to create meanings of new market categories. Status transfer between markets influences the perception and evaluation of audience in new markets, thus would have an impact on firm performance. Our study contributes to status-based market competition literature and diversification literature.