Institutional barriers and industry dynamics

Strategic Management Journal

Volumn 35, Issue 8, 2014, Pages 1103-1123

  Chang, Sea Jin ^a,b   Wu, Brian ^c  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

^b Korea Advanced Institute of Science and Technology (KAIST)   (South Korea)

^c UNIVERSITY OF MICHIGAN   (United States)

Author keywords

incumbents; industry dynamics; institutional barriers; liberalization; new entrants

Indexed keywords

HAZARDS; PRODUCTIVITY;

INCUMBENTS; INDUSTRY DYNAMICS; INSTITUTIONAL BARRIERS; LIBERALIZATION; NEW ENTRANTS;

INDUSTRY;

EID: 84904042487     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.2152     Document Type: Article

References (90)

1. Agarwal R, Sarkar MB, Echambadi R,. 2002. The conditioning effect of time on firm survival: an industry life cycle approach. Academy of Management Journal 45 (5): 971-994.
2. Ahlstrom D, Bruton G, Yeh K,. 2007. Venture capital in China: past, present, and future. Asia Pacific Journal of Management 24 (3): 247-268.
3. Aldrich HE,. 1979. Organizations and Environments. Prentice-Hall: Englewood Cliffs, NJ.
4. Aldrich HE,. 1999. Organizations Evolving. Sage Publications: London, UK.
5. Argote L, Beckman SL, Epple D,. 1990. The persistence and transfer of learning in industrial settings. Management Science 36 (2): 140-154.
6. Asplund M, Nocke V,. 2006. Firm turnover in imperfectly competitive markets. Review of Economic Studies 73 (2): 295-327.
7. Aw BY, Chung S, Roberts MJ,. 2003. Productivity, output, and failure: a comparison of Taiwanese and Korean manufacturers. Economic Journal 113: 485-510.
8. Balasubramanian N, Lieberman MB,. 2010. Industry learning environments and the heterogeneity of firm performance. Strategic Management Journal 31 (4): 390-412.
9. Baldwin JR,. 1995. The Dynamics of Industrial Competition: A North American Perspective. Cambridge University Press: Cambridge, MA.
10. Bartelsman EJ, Doms M,. 2000. Understanding productivity: lessons from longitudinal microdata. Journal of Economic Literature 38 (3): 569-594.
11. Bartelsman E, Haltiwanger J, Scarpetta S., 2009. Measuring and analyzing cross-country differences in firm dynamics. In, T Dunne, JB Jensen, MJ Roberts, (eds)., Producer Dynamics: New Evidence from Micro Data. The University of Chicago Press: Chicago, IL.
12. Batra G, Kaufmann D, Stone AHW,. 2003. Investment Climate around the World: Voices of the Firms from the World Business Environment Survey. World Bank: Washington, DC.
13. Baum JAC, Oliver C,. 1991. Institutional linkages and organizational mortality. Administrative Science Quarterly 36 (2): 187-218.
14. Brandt L, Van Biesebroeck J, Zhang Y,. 2011. Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing. Journal of Development Economics 97 (2): 339-351.
15. Brown JD, Earle JS,. 2008. Understanding the contributions of reallocation to productivity growth: lessons from a comparative firm-level analysis. IZA Discussion paper, Institute for the Study of Labor, Bonn, Germany.
16. Caballero RJ, Hammour ML., 1994 The cleansing effect of recessions. American Economic Review 84 (5): 1350-1368.
17. Caves DW, Christensen LR, Diewert WE,. 1982. The economic theory of index numbers and the measurement of input, output, and productivity. Econometrica 50 (6): 1393-1414.
18. Chandler ADJ,. 1962. Strategy and Structure: Chapters in the History of the American Industrial Enterprise. MIT Press: Cambridge, MA.
19. Chang SJ, Xu D,. 2008. Spillovers and competition among foreign and local firms in China. Strategic Management Journal 29 (5): 495-518.
20. Dierickx I, Cool K,. 1989. Asset stock accumulation and sustainability of competitive advantage. Management Science 35 (12): 1504-1512.
21. DiMaggio PJ, Powell WW,. 1983. The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review 48 (2): 147-160.
22. Dunne T, Roberts MJ, Samuelson L,. 1988. Patterns of firm entry and exit in United States manufacturing industries. Rand Journal of Economics 19 (4): 495-515.
23. Dunne T, Roberts MJ, Samuelson L,. 1989. The growth and failure of U. S. manufacturing plants. Quarterly Journal of Economics 104 (4): 671-698.
24. Ericson R, Pakes A,. 1995. Markov-perfect industry dynamics: a framework for empirical work. Review of Economic Studies 62 (1): 53-82.
25. Foster L, Haltiwanger J, Syverson C,. 2008. Reallocation, firm turnover, and efficiency: selection on productivity or profitability? American Economic Review 98 (1): 394-425.
26. Geroski PA,. 1995. What do we know about entry? International Journal of Industrial Organization 13 (4): 421-440.
27. Helfat CE,. 1997. Know-how and asset complementarity and dynamic capability accumulation: the case of R&D. Strategic Management Journal 18 (5): 339-360.
28. Helfat CE,. 2007. Stylized facts, empirical research and theory development in management. Strategic Organization 5 (2): 185-192.
29. Hoetker G,. 2007. The use of logit and probit models in strategic management research: critical issues. Strategic Management Journal 28 (4): 331-343.
30. Hopenhayn HA,. 1992. Entry, exit, and firm dynamics in long run equilibrium. Econometrica 60 (5): 1127-1150.
31. Hsieh C-T, Klenow PJ,. 2009. Misallocation and manufacturing TFP in China and India. Quarterly Journal of Economics 124 (4): 1403-1448.
32. Jefferson GH, Singh I, Xing J, Zhang S,. 1999. China's industrial performance: a review of recent findings. In, GH Jefferson, I Singh, (eds)., Enterprise Reform in China: Ownership, Transition, and Performance: 127-152. Oxford University Press: Oxford, UK.
33. Jia N, Mayer KJ,. 2010. Corporate political goals and firms' market capabilities: an integrated perspective. University of Southern California Working paper, University of Southern California, Los Angeles, CA.
34. Jovanovic B,. 1982. Selection and the evolution of industry. Econometrica 50 (3): 649-670.
35. Khanna T, Palepu K,. 1997. Why focused strategies may be wrong for emerging markets. Harvard Business Review 75 (4): 41-51.
36. Klepper S,. 1996. Entry, exit, growth, and innovation over the product life cycle. American Economic Review 86 (3): 562-583.
37. Kornai J, Maskin E, Roland G,. 2003. Understanding the soft budget constraint. Journal of Economic Literature 41 (4): 1095-1136.
38. Lau L, Qian Y, Roland G,. 2000. Reform without losers: an interpretation of China's dual track approach to transition. Journal of Political Economy 108 (1): 120-143.
39. Lee GK,. 2009. Understanding the timing of 'fast-second' entry and the relevance of capabilities in invention vs. commercialization. Research Policy 38 (1): 86-95.
40. Levinsohn J, Petrin A,. 2003. Estimating production functions using inputs to control for unobservables. Review of Economic Studies 70 (2): 317-341.
41. Li H, Atuahene-Gima K,. 2001. Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal 44 (6): 1123-1134.
42. Li H, Hitt MA,. 2006. Growth of new technology ventures in China: an introduction. In, H Li, (ed)., Growth of New Technology Ventures in China's Emerging Market: 3-10. Edward Elgar Publishing Ltd.: Northampton, MA.
43. Li H, Zhang Y,. 2007. The role of managers' political networking and functional experience in new venture performance: evidence from China's transition economy. Strategic Management Journal 28 (8): 791-804.
44. Li H, Zhou L-A,. 2005. Political turnover and economic performance: the incentive role of personnel control in China. Journal of Public Economics 89 (9-10): 1743-1762.
45. Lieberman MB,. 1989. The learning-curve, technology barriers to entry, and competitive survival in the chemical-processing industries. Strategic Management Journal 10 (5): 431-447.
46. Luo Y,. 2003. Industrial dynamics and managerial networking in an emerging market: the case of China. Strategic Management Journal 24 (13): 1315-1327.
47. Luo Y, Junkunc M,. 2008. How private enterprises respond to government bureaucracy in emerging economies: the effects of entrepreneurial type and governance. Strategic Entrepreneurship Journal 2 (2): 133-153.
48. Maksimovic V, Phillips G,. 2008. The industry life cycle, acquisitions and investment: does firm organization matter? Journal of Finance 63 (2): 673-707.
49. Melitz MJ,. 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71 (6): 1695-1725.
50. Meyer JW, Scott WR,. 1983. Centralization and the legitimacy problems of local government. In, JW Meyer, WR Scott, (eds)., Organizational Environments: Ritual and Rationality: 199-215. Sage: Beverly Hills, CA.
51. Miner AS, Amburgey TL, Stearns TM,. 1990. Interorganizational linkages and population dynamics: buffering and transformational shields. Administrative Science Quarterly 35 (4): 689-713.
52. Mitchell W,. 1989. Whether and when? Probability and timing of incumbents' entry into emerging industrial subfields. Administrative Science Quarterly 34 (2): 208-230.
53. Mitchell W,. 1994. The dynamics of evolving markets: the effects of business sales and age on dissolutions and divestitures. Administrative Science Quarterly 39 (4): 575-602.
54. Nee V,. 1992. Organizational dynamics of market transition: hybrid forms, property rights, and mixed economy in China. Administrative Science Quarterly 37 (1): 1-27.
55. Nee V, Opper S,. 2010. Political capital in a market economy. Social Forces 88 (5): 2105-2132.
56. Nelson RR,. 2002. Bringing institutions into evolutionary growth theory. Journal of Evolutionary Economics 12 (1-2): 17-28.
57. Nelson RR, Sampat BN,. 2001. Making sense of institutions as a factor shaping economic performance. Journal of Economic Behavior & Organization 44 (1): 31-54.
58. North DC,. 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press: Cambridge, UK.
59. Oliver C,. 1991. Strategic responses to institutional processes. Academy of Management Review 16 (1): 145-179.
60. Olley SG, Pakes A,. 1996. The dynamics of productivity in the telecommunications equipment industry. Econometrica 64 (6): 1263-1297.
61. Park SH, Li S, Tse D,. 2006. Market liberalization and firm performance during China's economic transition. Journal of International Business Studies 37 (1): 127-147.
62. Park SH, Luo Y,. 2001. Guanxi and organizational dynamics: organizational networking in Chinese firms. Strategic Management Journal 22 (5): 455-477.
63. Qian Y, Roland G, Xu C,. 1999. Why is China different from Eastern Europe? Perspectives from organization theory. European Economic Review 43 (4-6): 1085-1094.
64. Qian Y, Roland G, Xu C,. 2006. Coordination and experimentation in M-form and U-form organizations. Journal of Political Economy 114 (2): 366-402.
65. Rajan RG, Zingales L,. 1998. Financial dependence and growth. American Economic Review 88 (3): 559-586.
66. Rawski TG,. 1980. China's Transition to Industrialism: Producer Goods and Economic Development in the Twentieth Century. University of Michigan Press: Ann Arbor, MI.
67. Samaniego RM,. 2009. Entry, exit, and investment-specific technical change. American Economic Review 100 (1): 164-192.
68. Sarkar MB, Echambadi R, Agarwal R, Sen B,. 2006. The effect of the innovative environment on exit of entrepreneurial firms. Strategic Management Journal 27 (6): 519-539.
69. Schumpeter JA,. 1934. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Harvard University Press: Cambridge, MA.
70. Schumpeter JA,. 1942. Capitalism, Socialism and Democracy. Harper & Brothers: New York; London, UK.
71. Scott WR, Meyer JW,. 1991. The organization of societal sectors: propositions and early evidence. In The New Institutionalism in Organizational Analysis, Dimaggio P, Powell WW (eds). University of Chicago Press: Chicago, IL; 108-140.
72. Scott WR,. 2008. Institutions and Organizations: Ideas and Interests. Sage Publications: Thousand Oaks, CA.
73. Singh JV, Tucker DJ, House RJ,. 1986. Organizational legitimacy and the liability of newness. Administrative Science Quarterly 31 (2): 171-193.
74. Sosa ML,. 2009. Application-specific R&D capabilities and the advantage of incumbents: evidence from the anticancer drug market. Management Science 55 (8): 1409-1422.
75. Stinchcombe AL,. 1965. Organizations and social structure. In, JG March, (ed)., Handbook of Organizations: 153-193. Rand-McNally: Chicago, IL.
76. Suchman MC,. 1995. Managing legitimacy-Strategic and institutional approaches. Academy of Management Review 20 (3): 571-610.
77. Syverson C,. 2011. What determines productivity? Journal of Economic Literature 49 (2): 326-365.
78. Tan J, Tan D,. 2005. Environment-strategy co-evolution and co-alignment: a staged model of Chinese SOEs under transition. Strategic Management Journal 26 (2): 141-157.
79. Tripsas M,. 1997. Unraveling the process of creative destruction: complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal (Summer) Special Issue 18: 119-142.
80. Tushman ML, Anderson P,. 1986. Technological discontinuities and organizational environments. Administrative Science Quarterly 31 (3): 439-465.
81. Tybout JR,. 2000. Manufacturing firms in developing countries: how well do they do, and why? Journal of Economic Literature 38 (1): 11-44.
82. Van Biesebroeck J,. 2007. Robustness of productivity estimates. The Journal of Industrial Economics 55 (3): 529-569.
83. Walder AG,. 1995. Local governments as industrial firms: an organizational analysis of China's transitional economy. The American Journal of Sociology 101 (2): 263-301.
84. World Bank. 2006. Governance, Investment Climate, and Harmonious Society. Washington, DC: World Bank.
85. World Bank. 2008. Doing Business 2008. Washington, DC: World Bank.
86. Wu J,. 2005. China's Long March Toward a Market Economy. Long River Press: San Francisco, CA.
87. Young A,. 2000. The razor's edge: distortions and incremental reform in the People's Republic of China. Quarterly Journal of Economics 115 (4): 1091-1135.
88. Zhang Y, Li H,. 2010. Innovation search of new ventures in a technology cluster: the role of ties with service intermediaries. Strategic Management Journal 31 (1): 88-109.
89. Zhang Y, Li H, Li Y, Zhou L-A,. 2010. FDI spillovers in an emerging market: the role of foreign firms' country origin diversity and domestic firms' absorptive capacity. Strategic Management Journal 31 (9): 969-989.
90. Zimmerman MA, Zeitz GJ,. 2002. Beyond survival: achieving new venture growth by building legitimacy. Academy of Management Review 27 (3): 414-431.