Product turnover: Simultaneous product market entry and exit

Douglas J. Miller, Hsiao Shan Yang

Research output: Contribution to journalArticlepeer-review

9 Scopus citations


Resource redeployment may occur when a firm exits from one line of business and enters another. We suggest that when multiproduct firms identify opportunities in new high-growth markets, their entry will occur alongside exit from low-growth markets when the firm is resourceconstrained. For our sample of over 47,000 high-tech US firms in CorpTech from 1993 to 2004, 5% of the firm-years include simultaneous entry and exit at the product market level, which we term "product turnover." Firms are more likely to engage in product turnover when there is a larger spread between the highest and lowest growth rates for the product markets in the firm's portfolio. This effect is strongest for smalland medium-sized firms, which tend to be privately held. Therefore, future research on resource redeployment might find fruitful ground in samples of mid-size firms.

Original languageEnglish (US)
Pages (from-to)49-87
Number of pages39
JournalAdvances in Strategic Management
StatePublished - 2016

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management


  • Market entry and exit
  • Multiproduct firms
  • Product turnover
  • Resource redeployment


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