Integrating category spanning and firm performance: A meta-analysis

Purpose: This study aims to examine the relationship between category spanning and firm performance and the moderating role of category structure. Design/methodology/approach: This study conducted a comprehensive meta-analysis of the empirical literature on category spanning. Following established meta-analytic procedures, this study employed a random-effects model to conduct a bivariate meta-analysis estimating the aggregated correlation between category spanning and firm performance and used subgroup analyses and meta-regression to identify the boundary conditions underlying effect-size heterogeneity. Findings/results: Category spanning is positively associated with outcome-based performance but negatively associated with perception-based performance. These effects vary systematically across levels of category structure and across cultural contexts. Practical implications: This study highlights the ambidexterity of firms’ category spanning, providing guidance and evidence for managers on how to operate businesses in multiple categories while pursuing differentiation and legitimacy processes. Originality/value: This study clarifies the relationship between category spanning and firm performance by distinguishing between outcome-based and perception-based performance.