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The fates of De Novo and De Alio producers in the American Automobile Industry 1885–1981
Author(s) -
Carroll Glenn R.,
Bigelow Lyda S.,
Seidel MARCDavid L.,
Tsai Lucia B.
Publication year - 2007
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250171009
Subject(s) - industrial organization , business , value (mathematics) , automotive industry , marketing , engineering , computer science , aerospace engineering , machine learning
Do laterally diversifying firms outlast new startups? Or does organizational inertia give the advantage to startups? We explore these questions here using the experiences of American automobile manufacturers from 1885 through 1981. We advance and test an integrative model that allows the organizational effects of entry mode to vary across the firm's life cycle. We also compare the life chances of laterally diversifying firms by industry of origin, including especially bicycle, carriage and engine manufacturers. Findings show the potentially integrative value of an evolutionary approach to strategy.