JSM 2021 R2 Concentration vs Spreading with Authors.pdf (475.78 kB)
Download fileRevisiting the ‘concentration vs spreading debate’: Perceived risk and strategic flexibility in decision-making regarding an unanticipated environmental market disruption
journal contribution
posted on 2021-07-05, 13:27 authored by Jim Crick, David CrickManaging risk is an important aspect of owner-managers’ decision-making; however, the impact of major
environmental market disruptions remains largely under-researched. Underpinned by an effectuation lens, this
study examines decision-making associated with the ‘concentration versus spreading debate’ (focusing on a single
or limited number of product-market strategies rather than diversifying across a variety of product-markets). The
context features post natural-disaster recovery strategies following a high magnitude earthquake that immediately
ended firms’ sales within their local proximity. The study employs a longitudinal qualitative research design involving
16 smaller-sized wine producers in the Canterbury/Waipara Valley cluster of New Zealand, illustrating different
degrees of strategic flexibility among owner-managers. Unique insights offer varying ‘how and why’ perspectives
into decision-making regarding the extent to which product-market strategies differed across core and augmented
product portfolios and geographic markets prior to and following the disruption caused by the unanticipated natural
disaster.
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