The effects of product diversification on firm performance and complementarities between products: A study of US casinos

Kyung Ho Kang, Seoki Lee, Hongsuk Yang

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

In spite of the growing importance of product diversification strategy and the existence of varying degrees of product diversity in the US casino industry, research of the effect of product diversification on firm performance has been sparse. By examining the impact of the degree of product diversification on both financial market- and accounting-based firm performance of sampled US casinos and complementarities between products, this study attempts to fill the gap in the hospitality literature. Results of this study show an inverse U-shaped relationship between the degree of product diversification and firm performance and complementarities between gaming business and food and beverage (F&B) business. These findings suggest that US casinos take into account both costs and benefits associated with product diversification, and consider F&B operations more preferentially as a supplementary business when implementing product diversification strategy.

Original languageEnglish (US)
Pages (from-to)409-421
Number of pages13
JournalInternational Journal of Hospitality Management
Volume30
Issue number2
DOIs
StatePublished - Jun 2011

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

Fingerprint

Dive into the research topics of 'The effects of product diversification on firm performance and complementarities between products: A study of US casinos'. Together they form a unique fingerprint.

Cite this