Diversification patterns and survival as firms mature

Small Business Economics

Volumn 41, Issue 3, 2013, Pages 633-649

  Coad, Alex ^a,d   Guenther, Christina ^b,c  

^a Freeman Centre   (United Kingdom)

^b MAX PLANCK INSTITUTE FOR THE SCIENCE OF HUMAN HISTORY   (Germany)

^c WHU OTTO BEISHEIM SCHOOL OF MANAGEMENT   (Germany)

^d AALBORG UNIVERSITY   (Denmark)

Author keywords

Diversification patterns; Firm age; Firm growth; Industry evolution; Machine tools; Survival

Indexed keywords

EID: 84884532635     PISSN: 0921898X     EISSN: 15730913     Source Type: Journal    
DOI: 10.1007/s11187-012-9447-7     Document Type: Article

References (57)

1. Abernathy, W. J., & Utterback, J. M. (1978). Patterns of industrial restructuring. Technology Review, 80, 1-9.
2. Aldrich, H. E., & Auster, E. R. (1986). Even dwarfs started small: Liabilities of age and size and their strategic implications. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior (Vol. 8, pp. 165-198). Greenwich: JAI.
3. Ashburn, A. (1988). The machine tool industry: The crumbling foundation. In D. A. Hicks (Ed.), Is new technology enough? Making and remaking of U. S. basic industry. Washington, DC: American Enterprise Institute for Public Policy Research.
4. Azevedo, J. P. W. (2004). grqreg: Stata module to graph the coefficients of a quantile regression. Chestnut Hill: Department of Economics, Boston College.
5. Barney, J. B. (1997). Gaining and sustaining competitive advantage. Reading: Addison-Wesley.
6. Barron, D. N., West, E., & Hannan, M. T. (1994). A time to growth and a time to die: Growth and mortality of credit unions in New York, 1914-1990. American Journal of Sociology, 100(2), 381-421.
7. Bellone, F., Musso, P., Nesta, L., & Quere, M. (2008). Market selection along the firm life cycle. Industrial and Corporate Change, 17(4), 753-777.
8. Bettis, R. A. (1981). Performance differences in related and unrelated diversified firms. Strategic Management Journal, 2, 379-394.
9. Bottazzi, G., & Secchi, A. (2006). Gibrat's law and diversification. Industrial and Corporate Change, 37(2), 235-256.
10. Brüderl, J., & Schüssler, R. (1990). Organizational mortality: The liability of newness and adolescence. Administrative Science Quarterly, 35, 530-547.
11. Buenstorf, G., & Guenther, C. (2011). No place like home? Location choice and firm survival after the forced relocation in the German machine tool industry. Industrial and Corporate Change, 20, 1-28.
12. Capasso, M., Cefis, E., & Frenken, K. (2009). Do some firms persistently outperform? LEM working paper series 2009/15. Pisa: Sant'Anna School of Advanced Studies.
13. Cefis, E., Marsili, O., & Schenk, H. (2009). The effects of mergers and acquisitions on the firm size distribution. Journal of Evolutionary Economics, 19, 1-20.
14. Chang, S. J. (1996). An evolutionary perspective on diversification and corporate restructuring: Entry, exit and economic performance during 1981-1989. Strategic Management Journal, 17, 587-611.
15. Chatterjee, S., & Wernerfelt, B. (1991). The link between resources and type of diversification: Theory and evidence. Strategic Management Journal, 12, 33-48.
16. Coad, A. (2007). A Closer Look at Serial Growth Rate Correlation. Review of Industrial Organization, 31, 69-82.
17. Coad, A., & Hölzl, W. (2009). On the autocorrelation of growth rates. Journal of Industry Competition and Trade, 9, 139-166.
18. Coad, A., Segarra, A., & Teruel, M. (2012). Like milk or wine: Does firm performance improve with age? Structural Change and Economic Dynamics. doi: 10. 1016/j. strueco. 2012. 07. 002.
19. Coad, A., & Tamvada, J. P. (2012). Firm growth and barriers to growth among small firms in India. Small Business Economics, 39, 383-400.
20. Cox, D. R. (1972). Regression models and life-tables. Journal of the Royal Statistical Society Series B, 34, 187-220.
21. Davidsson, P., & Delmar, F. (2006). High growth firms and their contribution to employment: The case of Sweden 1987-96. In P. Davidsson, F. Delmar, & J. Wiklund (Eds.), Entrepreneurship and the growth of the firm. Cheltenham: Edward Elgar.
22. Farjoun, M. (1994). Beyond industry boundaries: Human expertise, diversification, and resource-related industry groups. Organization Science, 5, 185-199.
23. Fleischer, M. (1997). The inefficiency trap: Strategy failure in the German machine tool industry. Berlin: Ed. Sigma.
24. Greiner, L. (1972). Evolution and revolution as organizations grow. Harvard Business Review, 50(4), 37-46.
25. Guenther, C. (2009). Structural change in the German machine tool market - An empirical investigation of technological, regional, and firm-specific developments. Dissertation, Friedrich-Schiller-Universität, Jena.
26. Headd, B. (2003). Redefining business success: Distinguishing between closure and failure. Small Business Economics, 21, 51-61.
27. Hill, C. W. L., & Snell, S. A. (1988). External control, corporate strategy, and firm performance in research-intensive industries. Strategic Management Journal, 9, 577-590.
28. Huergo, E., & Jaumandreu, J. (2004). How does probability of innovation change with firm age? Small Business Economics, 22, 193-207.
29. Hymer, S., & Pashigian, P. (1962). Firm size and rate of growth. Journal of Political Economy, 70(6), 556-569.
30. Jacobs, J. (1969). The economy of cities. New York: Vintage Books.
31. Kandilov, I. T. (2009). Do exporters pay higher wages? Plant-level evidence from an export refund in Chile. World Bank Economic Review, 23, 269-294.
32. Klepper, S. (1996). Entry, exit, growth, and innovation over the product life cycle. American Economic Review, 86, 562-583.
33. Klepper, S. (1997). Industry life cycles. Industrial and Corporate Change, 6, 145-181.
34. Klepper, S., & Sleeper, S. (2005). Entry by spinoffs. Management Science, 51, 1291-1306.
35. Klepper, S., & Thompson, P. (2006). Submarkets and the evolution of market structure. Rand Journal of Economics, 37(4), 861-886.
36. Lee, Y., Amaral, L. A. N., Canning, D., Meyer, M., & Stanley, H. E. (1998). Universal features in the growth dynamics of complex organizations. Physical Review Letters, 81, 3275-3278.
37. Lockett, A., Wiklund, J., Davidsson, P., & Girma, S. (2010). Organic and acquisitive growth: Re-examining, testing and extending Penrose's growth theory. Journal of Management Studies, 48, 48-74.
38. Marris, R. (1964). The economic theory of managerial capitalism. London: Macmillan.
39. Marshall, A. (1890). Principles of economics. London: Macmillan.
40. Matia, K., Fu, D., Buldyrev, S., Pammolli, F., Riccaboni, M., & Stanley, H. (2004). Statistical properties of business firms structure and growth. Europhysics Letters, 67, 498-503.
41. McKelvie, A., & Wiklund, J. (2010). Advancing firm growth research: A focus on growth mode instead of growth rate. Entrepreneurship Theory and Practice, 34, 261-288.
42. Montgomery, C. (1994). Corporate diversification. Journal of Economic Perspectives, 8, 163-178.
43. Montgomery, C., & Hariharan, S. (1991). Diversified entry by established firms. Journal of Economic Behavior and Organization, 15, 71-89.
44. Mosakowski, E. (1997). Strategy making under causal ambiguity: Conceptual issues and empirical evidence. Organization Science, 8, 414-442.
45. Palich, L. E., Cardinal, L. B., & Miller, C. C. (2000). Curvilinearity in the diversification-performance linkage: An examination of over three decades of research. Strategic Management Journal, 21, 155-174.
46. Penrose, E. T. (1959/1995). The theory of the growth of the firm. Oxford: Oxford University Press.
47. Robin, J. A., & Wiersema, C. F. (2003). The measurement of corporate portfolio strategy: Analysis of the content validity of related diversification indexes. Strategic Management Journal, 24, 39-59.
48. Rumelt, R. P. (1982). Diversification strategy and profitability. Strategic Management Journal, 3, 359-369.
49. Sciberras, E., & Payne, B. D. (1985). Machine tool industry. Technical change and the international competitiveness. Harlow: Longman.
50. Tanriverdi, H., & Venkatraman, N. (2005). Knowledge relatedness and the performance of multibusiness firms. Strategic Management Journal, 26, 97-119.
51. Teece, D. J., Rumelt, R., Dosi, G., & Winter, S. (1994). Understanding corporate coherence: Theory and evidence. Journal of Economic Behavior & Organization, 23, 1-30.
52. Teruel-Carrizosa, M. (2010). Gibrat's law and the learning process. Small Business Economics, 34, 355-373.
53. Utterback, J. M., & Suarez, F. F. (1993). Innovation, competition, and industry structure. Research Policy, 22, 1-21.
54. VDW (2005). The German machine tool industry in 2004. Frankfurt/Main: Verein Deutscher Werkzeugmaschinenfabriken e. V.
55. Wan, W. P., Hoskisson, R. E., Short, J. C., & Yiu, D. W. (2011). Resource-based theory and corporate diversification: Accomplishments and opportunities. Journal of Management, 37, 1335-1368.
56. Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5, 171-180.
57. Wieandt, A. (1994). Innovation and the creation, development and destruction of markets in the world machine tool industry. Small Business Economics, 6, 421-437.