The Impact of Category Spanning on Firm Performance: Evidence from Patent Data of Innovative Technology Firms

Abstract

Abstract: Existing research on the relationship between category spanning and firm performance has yielded inconsistent conclusions, with limited empirical studies focusing on technology-based start-ups. Drawing on categorization theory, this paper explores the impact of category spanning across different patent categories on the performance of technology-based start-ups, utilizing patent data from 86 Chinese technology start-ups between 2000 and 2019, comprising a total of 451 patent records. Additionally, based on a population ecology perspective, this study examines the moderating effects of firm age and population density on the relationship between category spanning and firm performance. The findings reveal a U-shaped relationship between the extent of category spanning and firm performance. Moreover, the analysis shows that firm age strengthens the U-shaped relationship between category spanning and performance, while population density weakens this relationship. These results offer new explanations for the inconsistent effects of category spanning and provide valuable contextual insights. The study contributes to the strategic formulation and implementation of category spanning in firms, offering rich managerial implications.

Key words: category spanning, category theory, firm performance, technology start-ups

Wu Xiaojie, He Yuanman, Chen Xiaomei. The Impact of Category Spanning on Firm Performance: Evidence from Patent Data of Innovative Technology Firms[J]. Management Review, 2026, 38(8): 136-149.

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