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Early entry, capabilities and shakeout in the US brewing industry

Lynn A. Walter (Department of Management, Western New England University, Springfield, Massachusetts, USA)
Linda F. Edelman (Department of Management, Bentley University, Waltham, Massachusetts, USA)
Keneth J. Hatten (Department of Markets, Public Policy & Law, Boston University, Boston, Massachusetts, USA)

Journal of Management History

ISSN: 1751-1348

Article publication date: 11 January 2016

615

Abstract

Purpose

The purpose of this study is to examine how early-entry and process-based capability development affected firm survival during shakeout in the US brewing industry between 1938 and 1980.

Design/methodology/approach

Hazard analysis was conducted on US brewing industry data spanning 42 years from 1938 to 1980.

Findings

Both early-entry and later capability developments enhance the probability of survival. In addition, firms which entered early were also more likely to be the firms who continually developed capabilities across the decades.

Research limitations/implications

This study contributes to our understanding of shakeout in traditional, non-high-technology businesses. However, because it is a single industry study, the ability to the generalize findings to other industry contexts is limited.

Practical implications

Early entry can determine survival in industries with stable products and low levels of technological change.

Social implications

Policy-makers interested in competitive dynamics should take note of the historical conditions that lead to industry consolidation in traditional industries, which, while not as glamorous as the technology sector, provide the core of US industry.

Originality/value

Historical firm characteristics can impact industry structure and firm survival for over a century.

Keywords

Acknowledgements

The authors gratefully acknowledge the significant contributions of Robert Weinberg, Peter Reid, Phil Katz and Randy Carlson for their invaluable assistance in the data collection phase of this inquiry. The authors also thank Ferdinand Suarez and Todd Alessandri for their help on early versions of this paper. A previous version of this paper was presented at the 2009 Strategic Management Society Research Conference.

Citation

Walter, L.A., Edelman, L.F. and Hatten, K.J. (2016), "Early entry, capabilities and shakeout in the US brewing industry", Journal of Management History, Vol. 22 No. 1, pp. 24-49. https://doi.org/10.1108/JMH-03-2015-0022

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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