Size, differentiation and the performance of Dutch daily newspapers

We demonstrate how organizational ecology can contribute tostrategic management and managerial practice by using resource-partitioningtheory to make predictions with respect to: (i) the short-runperformance (i.e. growth and profitability) consequences ofbroad (generalist) vis-à-vis focus (specialist) strategies;(ii) the detrimental performance implications of a particularinstance of being strategically ‘stuck in the middle’;and (iii) the performance consequences of organizational sizedifferences. We hypothesize that these effects depend on theposition of the organization in resource space. These predictionsare tested by estimating models of growth and profitability,using data on Dutch generalist (national) and specialist (regional)newspapers from 1968 to 1994. The findings show that resource-partitioningtheory provides a dynamic backbone to understand the performanceconsequences of different generic strategies and organizationalsize positions.