Resolving the commitment versus flexibility trade-off: The role of resource accumulation lags

Academy of Management Journal

Volumn 51, Issue 3, 2008, Pages 517-536

  Pacheco De Almeida, Gonçalo ^a   Henderson, James E ^b   Cool, Karel O ^b  

^a NEW YORK UNIVERSITY   (United States)

^b IMD International ^*

Author keywords

[No Author keywords available]

Indexed keywords

EID: 47649104568     PISSN: 00014273     EISSN: None     Source Type: Journal    
DOI: 10.5465/AMJ.2008.32626001     Document Type: Article

References (76)

1. Adner, R., & Levinthal, D. A. 2004. What is not a real option: Considering boundaries for the application of real options to business strategy. Academy of Management Review, 29: 74-85.
2. Ai, C., & Norton, E. C. 2003. Interaction terms in logit and probit models. Economic Letters, 80: 123-129.
3. Ainslie, G., & Haslam, N. 1992. Hyperbolic discounting. In G. Loewenstein & J. Elster (Eds.), Choice over time: 57-92. New York: Russell Sage Foundation.
4. Bar-Ilan, A., & Strange, W. C. 1996. Investment lags. American Economic Review, 86: 610-622.
5. Barney, J. 2001. Is the resource-based "view" a useful perspective for strategic management research? Yes. Academy of Management Review, 26: 41-56.
6. Barney, J. B. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Science, 32: 1231-1241.
7. Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1): 99-120.
8. Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. 2004. Economics of Strategy (3rd ed.). New York: Wiley.
9. Chapman, K. 1991. The international petrochemical industry: Evolution and location. Oxford, U.K.: Basil Blackwell.
10. Chemical Insight. 1987. April, Mike Hyde Publications, London.
11. Cohen, W. M., Nelson, R. E., & Walsh, J. P. 2000. Protecting their intellectual assets: Appropriability conditions and why U.S. manufacturing firms patent (or not). NBER working paper no. 7552, National Bureau of Economic Research, Cambridge, MA.
12. Cool, K., Almeida Costa, L., & Dierickx, I. 2002. Constructing competitive advantage. In A. Pettigrew, H. Thomas, & R. Whittington (Eds.), Handbook of strategy and management: 55-71. London: Sage.
13. Dierickx, I., & Cool, K. 1989. Asset stock accumulation and sustainability of competitive advantage. Management Science, 35: 1504-1511.
14. Dierickx, I., & Cool, K. 1994. Competitive strategy, asset accumulation and firm performance. In H. Daems & H. Thomas (Eds.), Strategic groups, strategic moves and performance: 63-80. Oxford, U.K.: Pergamon Press.
15. Dixit, A. K., & Pindyck, R. S. 1994. Investment under uncertainty: Princeton, NJ: Princeton University Press.
16. Esty, B. C., & Ghemawat, P. 2002. Airbus vs. Boeing in superjumbos: A case of failed preemption. HBS Strategy Unit working paper, Harvard Business School, Boston.
17. Fudenberg, D., & Tirole, J. 1983. Capital as a commitment: Strategic investment to deter mobility. Journal of Economic Theory, 31: 227-250.
18. Ghemawat, P. 1984. Capacity expansion in the titanium dioxide industry. Journal of Industrial Economics, 33(2): 145-163.
19. Ghemawat, P. 1991. Commitment. New York: Free Press.
20. Gilbert, R. J., & Lieberman, M. 1987. Investment and coordination in oligopolistic industries. RAND Journal of Economics, 18: 17-33.
21. Grant, R. M. 1991. The resource-based theory of competitive advantage: implications for strategy formulation. California Management Review, 33(3): 114-136.
22. Graves, S. B. 1989. The time-cost tradeoff in research and development: a review. Engineering Costs and Production Economics, 16: 1-9.
23. Hall, R. 1992. The strategic analysis of intangible resources. Strategic Management Journal, 13: 135-144.
24. Hannan, M. T., & Freeman, J. 1984. Structural inertia and organizational change. American Sociological Review, 49: 149-164.
25. Hannan, M. T., Polos, L., & Carroll, G. R. 2004. The evolution of inertia. Industrial and Corporate Change, 13: 213-242.
26. Henderson, J. E. 1998. Learning to coordinate and time capacity expansion decisions: A longitudinal study of the worldwide petrochemical industry, 1975-1995. Unpublished doctoral dissertation, INSEAD, Fontainebleau, France.
27. Henderson, J. E., & Cool, K. 2003a. Corporate governance, investment bandwagons and overcapacity: An analysis of the worldwide petrochemical industry, 1975-95. Strategic Management Journal, 24: 349-373.
28. Henderson, J. E., & Cool, K. 2003b. Learning to time capacity expansions: An empirical analysis of the worldwide petrochemical industry, 1975-95. Strategic Management Journal, 24: 393-413.
29. Hitt, M. A., Keats, B. W., & DeMarie, S. M. 1998. Navigating in the new competitive landscape: Building strategic flexibility and competitive advantage in the 21st century. Academy of Management Executive, 12(4): 22-42.
30. Itami, H. 1987. Mobilizing invisible assets. Cambridge, MA: Harvard University Press.
31. Kirkpatrick, D. 1997. Intel's amazing profit machine. Fortune, 135: 60-66.
32. Kling, J. L., & McCue, T. E. 1987. Office building investment and the macroeconomy: Empirical evidence. Journal of the American Real Estate and Urban Economics Association, 15(3): 234-255.
33. Koeva, P. 2000. The facts about time-to-build. IMF working paper, International Monetary Fund, Washington DC.
34. Kogut, B. 1991. Joint ventures and the option to expand and acquire. Management Science, 37: 19-33.
35. Krainer, R. E. 1968. The time profile of capital accumulation in the automobile industry. Journal of Political Economy, 76: 1049-1057.
36. Kulatilaka, N., & Perotti, E. C. 1998. Strategic growth options. Management Science, 44: 1021-1031.
37. Lieberman, M. B. 1987a. Excess capacity as a barrier to entry: An empirical appraisal. Journal of Industrial Economics, 35: 607-627.
38. Lieberman, M. B. 1987b. Postentry investment and market structure in the chemical processing industries. RAND Journal of Economics, 18: 533-549.
39. Lieberman, M. B., & Montgomery, D. B. 1988. First-mover advantages. Strategic Management Journal, 9(spe-cial issue: Strategy content research): 41-58.
40. Lieberman, M. B., & Montgomery, D. B. 1998. First-mover (dis)advantages: Retrospective and link with the resource-based view. Strategic Management Journal, 19: 1111-1125.
41. Lippman, S. A., & Rumelt, R. P. 1982. Uncertain imita-bility: An analysis of interfirm differences in efficiency under competition. Bell Journal of Economics, 13: 418-438.
42. Lowe, P. 1979. Investment for production: Managing the plant investment process. New York: Wiley.
43. Luehrman, T. A. 1998. Strategy as a portfolio of real options. Harvard Business Review, 76(5): 89-99.
44. MacRae, K. M. 1989. Critical issues in electric power planning in the 1990s. Calgary, AB: Canadian Energy Research Institute.
45. Mansfield, E. 1971. Industrial research and technological innovation. New York: Norton.
46. Maritan, C. A. 2001. Capital investment as investing in organizational capabilities: An empirically grounded process model. Academy of Management Journal, 44: 513-531.
47. Mayer, T. 1960. Plant and equipment lead times. Journal of Business, 33(2): 127-132.
48. Mayer, T., & Sonenblum, S. 1955. Lead times for fixed investment. Review of Economic Statistics, 37: 300-304.
49. McGrath, R. G. 1997. A real options logic for initiating technology positioning investments. Academy of Management Review, 22: 974-996.
50. McGrath, R. G. 1999. Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review, 24: 13-30.
51. McGrath, R. G., Ferrier, W. J., & Mendelow, A. L. 2004. Real options as engines of choice and heterogeneity. Academy of Management Review, 29: 86-101.
52. Miles, D. 1993. Testing for short termism in the UK stock market. Economic Journal, 103: 1379-1396.
53. Mishina, Y., Pollock, T. G., & Porac, J. F. 2004. Are more resources always better for growth? Resource stickiness in market and product expansion. Strategic Management Journal, 25: 1179-1197.
54. Narayanan, M. P. 1985a. Managerial incentives for short-term results. Journal of Finance, 40: 1469-1484.
55. Narayanan, M. P. 1985b. Observability and the payback criterion. Journal of Business, 58: 309-323.
56. Pacheco-de-Almeida, G., & Zemsky, P. 2003. The effect of time-to-build on strategic investment under uncertainty. RAND Journal of Economics, 34: 166-182.
57. Pacheco-de-Almeida, G., & Zemsky, P. 2007. The timing of resource development and sustainable competitive advantage. Management Science, 53: 651-666.
58. Penrose, E. T. 1959. The theory of the growth of the firm. New York: Wiley.
59. Peteraf, M. A. 1993. The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14: 179-191.
60. Porter, M. E. 1980. Competitive strategy. New York: Free Press.
61. Priem, R., & Butler, J. 2001a. Is the resource-based "view" a useful perspective for strategic management research? Academy of Management Review, 26: 22-40.
62. Priem, R., & Butler, J. 2001b. Tautology in the resource-based view and the implications of externally determined resource value: Further comments. Academy of Management Review, 26: 57-65.
63. Reed, R., & DeFillippi, R. J. 1990. Causal ambiguity, barriers to imitation, and sustainable competitive advantage. Academy of Management Review, 15: 88-102.
64. Ross, S. A., Westerfield, R. W., & Jaffe, J. 1996. Corporate finance. Mahwah, NJ: Irwin.
65. Rumelt, R. P. 1984. Towards a strategic theory of the firm. In R. B. Lamb (Ed.), Competitive strategic management: 556-570. Englewood Cliffs, NJ: Prentice-Hall.
66. Scherer, F. M. 1967. Research and development resource allocation under rivalry. Quarterly Journal of Economics, 3: 367-391.
67. Schroeder, R. G., Bates, K. A., & Junttila, M. A. 2002. A resource-based view of manufacturing strategy and the relationship to manufacturing performance. Strategic Management Journal, 23: 105-118.
68. Shimizu, K., & Hitt, M. A. 2004. Strategic flexibility: Organizational preparedness to reverse ineffective strategic decisions. Academy of Management Executive, 18(4): 44-59.
69. Spence, A. M. 1979. Investment strategy and growth in a new market. Bell Journal of Economics, 10: 1-18.
70. Stein, J. C. 1988. Takeover threats and managerial myopia. Journal of Political Economy, 96: 61-80.
71. Stein, J. C. 1989. Efficient capital markets, inefficient firms: A model of myopic corporate behavior. Quarterly Journal of Economics, 104: 655-669.
72. vStigler, G. J. 1939. Production and distribution in the short run. Journal of Political Economy, 47: 305-327.
73. Szulanski, G. 2003. Sticky knowledge: Barriers to the knowing firm. Thousand Oaks, CA: Sage.
74. Teece, D. J., Pisano, G., & Shuen, A. 1997. Dynamic capabilities and strategic management. Strategic Management Journal, 18: 509-533.
75. Trigeorgis, L. 1996. Real options. Cambridge, MA: MIT Press.
76. Villalonga, B. 2004. Intangible resources, Tobin's Q, and sustainability of performance differences. Journal of Economic Behavior and Organization, 54: 205-231.