How do young firms manage product portfolio complexity? The role of absorptive capacity and ambidexterity

Stephanie A. Fernhaber, Pankaj C. Patel · 2012 · Strategic Management Journal

Summary. Young high-technology firms benefit from complex product portfolios through increased sales and competitiveness, but face rising costs that create diminishing returns. The study of 215 young firms shows that absorptive capacity and ambidexterity—the ability to balance exploration and exploitation—strengthen performance gains from portfolio complexity while reducing its costs.

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Fernhaber, S. A., & Patel, P. C.. (2012). How do young firms manage product portfolio complexity? The role of absorptive capacity and ambidexterity. Strategic Management Journal. https://doi.org/10.1002/smj.1994

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  title   = {How do young firms manage product portfolio complexity? The role of absorptive capacity and ambidexterity},
  author  = {Stephanie A. Fernhaber and Pankaj C. Patel},
  journal = {Strategic Management Journal},
  year    = {2012},
  doi     = {10.1002/smj.1994},
  url     = {https://doi.org/10.1002/smj.1994}
}

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Details

DOI: 10.1002/smj.1994
Countries: United States
Regions: North America
Categories: innovation-theory, entrepreneurship, general-innovation
Added: 2026-04-28