Abstract:

This study investigates the impact of diversifying products and services and developing a network of suppliers and customers on business success. The study builds upon a comprehensive literature review that encompasses seminal works and recent research on diversification strategies, product and service diversification, and network development and relationship management. The literature review highlights the significance of these factors in achieving business success and provides a theoretical framework for the study. Based on the analysis of data obtained from 220 companies in the services and production sectors of Albania and Kosovo, the findings reveal important insights. The analysis includes descriptive statistics, multicollinearity analysis, Pearson correlation matrix analysis, multivariable regression analysis, and ANOVA test. The results demonstrate that both diversifying products and services and developing a network of suppliers and customers have a positive impact on business success. The Pearson correlation analysis shows positive correlations between business success and both diversifying products and services and developing a network of suppliers and customers. The multivariable regression analysis further supports these findings, indicating that both variables significantly contribute to explaining the variance in business success. The contributions of the literature review and analysis provide valuable insights for businesses in the examined sample and beyond. The literature review establishes a foundation by integrating theories and concepts from previous studies, while the analysis of the findings validates and strengthens the understanding of the relationships between diversification, network development, and business success. The study underscores the importance of diversifying products and services to adapt to market dynamics and mitigate risks, as emphasized by influential authors such as Porter and Ansoff. It also highlights the role of network development and effective relationship management in leveraging external resources and achieving superior performance, as discussed by scholars like Dyer and Singh. The findings contribute to the understanding of these factors in the specific context of Kosovo and Albania. The study provides valuable insights for businesses operating in the services and production sectors of these regions, guiding their strategies for success. By diversifying products and services and cultivating a network of suppliers and customers, companies can enhance their competitive advantage, increase market share, and achieve sustainable profitability. Overall, it bridges the gap between theory and practice by integrating a comprehensive literature review with empirical analysis and offers practical implications for businesses aiming to thrive in dynamic markets, emphasizing the importance of diversification strategies and network development for achieving long-term success.

Keywords:

Diversification, products, services, network development, suppliers, customers, business success.

JEL codes:

G32, L11, L80, L14, L22, D12, L25.

How to Cite:

Labeat Mustafa and Ludmilla Shkurti. Diversifying Products and Services and Developing the Network of Suppliers and Customers: Exploring Their Impact on Business Success. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a272/