By bridging literature on resource partitioning and research on markets for technology, this article predicts that companies that pursue a broad (focused) product strategy buy more (less) technology in the market but sign fewer (more) deals as sellers. The proposed framework reveals that a thicker technology market increases the survival chances of both firms with focused product strategies and firms with broad product strategies; a misalignment between the product strategy and the strategies in the market for technology reduces those chances. To test these contentions, the authors consider a population of 736 firms that entered the security software industry between 1989 and 2002.
