Optimal Inertia: When Organizations Should Fail

Advances in Strategic Management

Volumn 23, Issue , 2006, Pages 73-99

  Dew, Nick ^a   Goldfarb, Brent ^a   Sarasvathy, Saras ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33745756076     PISSN: 07423322     EISSN: None     Source Type: Book Series    
DOI: 10.1016/S0742-3322(06)23003-1     Document Type: Review

References (38)

1. Aron D.J., and Lazear E.P. The introduction of new products. American Economic Review 80 2 (1990) 421-426
2. Baumol W. Contestable markets: An uprising in the theory of industry structure. American Economic Review 72 (1982) 1-15
3. Baye M.R., and Hoppe H.C. The strategic equivalence of rent-seeking, innovation, and patent-race games. Games and Economic Behavior 44 (2003) 217-226
4. Christensen C.M. The innovator's dilemma (2000), Harvard Business School Press, Boston, MA
5. Christensen C.M., and Bower J.L. Customer power, strategic investment and the failure of leading firms. Strategic Management Journal 17 (1996) 197-218
6. Christensen C.M., and Raynor M.E. The innovator's solution: Creating and sustaining successful growth (2003), Harvard Business School Press, Boston, MA
7. Collis D.J. How valuable are organizational capabilities?. Strategic Management Journal 15 (1994) 143-148
8. Dasgupta, P., & Stiglitz, J. (1980). Uncertainty, industrial structure, and the speed of R&D. Bell Journal of Economics, The RAND Corporation, 11(1), 1-28.
9. Dobrev S.D., Kim T.Y., and Carroll G.R. Shifting gears, shifting niches: Organizational inertia and change in the evolution of the U.S. automobile industry, 1885-1981. Organization Science 14 3 (2003) 264-282
10. Dobrev, S. D., Kim, T. Y., & Solari, L. (2004). The two sides of the coin: Core competence as capability and obsolescence. In: J. A. C. Baum, & A. M. McGahan (Eds), Business strategy over the industry lifecycle: Advances in strategic management (Vol. 21, pp. 255-287). JAI Press.
11. Freeman R.E. Strategic management: A stakeholder approach (1984), Pitman Publishing, New York
12. Gans J.S., and Stern S. The product market and the market for 'Ideas': Commercialization strategies for technology entrepreneurs. Research Policy 1441 32 (2002) 333-350
13. Ghemawat P., and Nalebuff B. Exit. Rand Journal of Economics 16 (1985) 184-194
14. Hannan M.T., and Freeman J. Structural inertia and organizational change. American Sociological Review 49 (1984) 149-164
15. Headd B. Redefining business success: Distinguishing between closure and failure. Small Business Economics 21 (2003) 51-61
16. Helfat C.E., and Lieberman M.B. The birth of capabilities: Market entry and the importance of pre-history. Industrial and Corporate Change 11 4 (2002) 725-760
17. Henderson R. Underinvestment and incompetence as responses to radical innovation: Evidence from the photolithographic alignment equipment industry. Rand Journal of Economics 24 2 (1993) 248-270
18. Hoppe H.C. Second-mover advantages in the strategic adoption of new technology under uncertainty. International Journal of Industrial Organization 18 (2000) 315-338
19. Jovanovic B. Selection and the evolution of industry. Econometrica 50 3 (1982) 649-670
20. King A.A., and Tucci C.L. Incumbent entry into new market niches: The role of experience and managerial choice in the creation of dynamic capabilities. Management Science 48 2 (2002) 171-186
21. Knott A.M., and Posen H.E. Is failure good?. Strategic Management Journal 26 (2005) 617-641
22. March J.G. Exploration and exploitation in organizational learning. Organization Science 2 1 (1991) 71-87
23. Moore, R. (2002). Julius Caesar: Et tu, Brute? In: P. Satoris (Ed.), eNotes: Julius Caesar. Seattle: Enotes.com LLC, October. Accessed 19 December 2005. http://www.enotes.com/jc/257.
24. O'Leary, C. (2003). Toys 'R' us in trouble again: Muchtouted 2002 restructuring falls prey to Wal-Mart pricing steamroller. Investment Dealers Digest, Nov. 24.
25. Peli G.L., Polos L., and Hannan M.T. Back to inertia : Theoretical implications of alternative styles of logical formalization. Sociological Theory 18 2 (2000) 195-215
26. Pólos L., Hannan M.T., and Carroll G.R. Foundations of a theory of social forms. Industrial and Corporate Change 11 (2002) 85-115
27. Pólos, L., & van Witteloostuijn, A. (2005). Who should dare to change? The theory of organizational inertia. Working Paper. University of Durham.
28. Reinganum J.F. Uncertain innovation and the persistence of monopoly. The American Economic Review 73 4 (1983) 741-748
29. Rosenberg, N. (1996). Uncertainty and technological change. In: J. C. Fuhrer, & J. Sneddon Little (Eds), Technology and growth: Conference series no. 40, Boston, MA: Federal Reserve Bank of Boston.
30. Ross J., and Staw B.M. Organizational escalation and exit: Lessons from the Shoreham Nuclear Power Plant. Academy of Management Journal 36 4 (1993) 701-732
31. Ruef, M. (2006). Boom and bust: The effect of entrepreneurial inertia on organizational populations. In: J. A. C. Baum, S. D. Dobrev & A. van Witteloostuijn, (Eds.), Strategy and ecology: Advances in strategic management (Vol. 23, pp. 29-72). Oxford, UK: JAI/Elsevier.
32. Sarasvathy, S. D., & Menon, A. R. (2004). Failing firms and successful entrepreneurs: Serial entrepreneurship as a temporal portfolio. Working Paper.
33. Teece D.J. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy 15 (1986) 285-305
34. Teece D.J., Pisano G., and Shuen A. Dynamic capabilities and strategic management. Strategic Management Journal 18 7 (1997) 509-540
35. Tripsas M. Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal 18 (1997) 119-142
36. Van Witteloostuijn A. Bridging behavioral and economic theories of decline: Organizational inertia, strategic competition and chronic failure. Management Science 44 4 (1998) 501-519
37. Venkataraman, S. (2002). Stakeholder value equilibration and the entrepreneurial process. Business Ethics Quarterly, Ruffin Series #3.
38. Winter S.G. Understanding dynamic capabilities. Strategic Management Journal 24 10 (2003) 991-995