Mitigating the negative effect of intrabrand clustering: the role of interbrand clustering and firm size

Clustering—geographic concentrations of entities—has recently received more attention in marketing research and has been shown to affect multiple outcomes. This study investigates the impact of intrabrand clustering (clustering of same-brand outlets) on an outlet’s quality performance. Further, it assesses the moderating effects of interbrand clustering (clustering of other-brand outlets) and firm size. An examination of approximately 21,000 food service establishments in New York State in 2019 finds that the impact of intrabrand clustering on an outlet’s quality performance is context-dependent. Specifically, intrabrand clustering decreases, whereas interbrand clustering and firm size help to increase the outlet’s performance. Additionally, this study finds that the role of firm size is more substantial than interbrand clustering in mitigating the adverse effects of intrabrand clustering on outlet quality performance.