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Positional rigidity: low performance and resource acquisition in large and small firms
Author(s) -
Greve Henrich R.
Publication year - 2011
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.875
Subject(s) - rigidity (electromagnetism) , industrial organization , resource based view , resource (disambiguation) , microeconomics , economics , business , econometrics , marketing , computer science , competitive advantage , engineering , computer network , structural engineering
Past research has given contradictory answers to the question of how strategic change is linked to firm size and performance. This paper resolves the contradictory predictions of performance feedback theory and threat rigidity theory by positing that small and large firms have distinct responses to performance because of differences in risk aversion and internal rigidity. To examine these differences, it is necessary to distinguish risk taking from rigidity in the strategic position, which is accomplished by separate analysis of the amount of resource acquisition and the difference of acquired and existing resources. Analysis of data from the shipping industry supports the predicted interactions of firm size and performance. Copyright © 2010 John Wiley & Sons, Ltd.