We examine how generalists and specialists adapt under coarse-grained changes. Analyzing a declining copperware cluster, we develop a grounded model of form-dependent adaptation, linking ecological fit, capability fit, and organizational alignment. Specialists faced greater ecological misfit but redeployed broadly and narrowly valuable capabilities into decorative markets, where lower redeployment costs and stronger capability fit enabled related diversification. Organizational alignment then sustained diversification. Extending the niche width-adaptability debate to declining craft industries, the study reveals context-dependent dynamics overlooked in prior research.
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Özen et al. (2026) studied this question.
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