For many service firms, it is undoubtedly very tempting to act as a one-stop shop for clients to retain as much of their business as possible. So a law firm that handles a client’s mergers and acquisitions business could also offer services in intellectual property litigation or other areas. But one-stop shops actually erode the value provided to clients because the expertise gets diffused, according to the paper, “Estimating Value Creation From Revealed Preferences: Application to Value-based Strategies,” by Olivier Chatain, a professor of strategy and business policy at HEC Paris and an academic senior fellow at Wharton’s Mack Institute for Innovation Management . His co-author is Denisa Mindruta, also a professor at HEC Paris.

Chatain joined Knowledge at Wharton recently to talk about the findings of their paper. You can listen to the podcast using the player above.…