Search results

This paper explores how two understudied characteristics of a firm's product portfolio, namely, aging of products and (non)innovativeness of products, affect firm survival. The influence of these product portfolio characteristics on organizational mortality can be observed both at the firm and at the industry levels. Paradoxically, the portfolio's influence at the firm and at the industry levels may go in opposite directions. Specifically, I predict that portfolios with aging products make their firms weaker competitors and survivors. However by weakening these firms, “aging” portfolios reduce competitive pressures at the industry level and, therefore, improve firm survival indirectly by changing industry vital rates. In contrast, firms with innovative product portfolios should be stronger survivors. At the same time, they are likely to intensify competition in the industry and, as a result, diminish survival chances of all firms, including those with innovative products. The analyses of all firms’ product portfolios in the worldwide optical disk drive industry, 1983–1999, support these predictions.

From Al-Qaeda to the IRA, almost all terrorist organisations have experienced splits in some shape or form. This can spell the dawn of violent spoiler groups, but it may equally play a significant role in the overall politicisation of a group. The purpose of this paper is to provide a greater understanding of these splits by assessing the issue from a political organisational perspective.

The author proposes that by addressing splits through the lens of organisational survival, we may gain a greater insight into the process which takes place in the lead up to, and in the aftermath of, organisational cleavage.

It is posited that the rationale behind schism can, at times, be the result of a desire from at least one side to maintain the survival of the organisation in a form they both respect and recognise. In order to achieve this, it might require forming an independent, autonomous organisation, or alternatively promoting the exit of internal factional competitors.

Within the paper, three organisational hypotheses are proposed. It is vital that in order to assess their validity, these are empirically tested by future researchers.

To be able to counter terrorist organisations, one must first have an understanding of the external and internal events and processes. While much of our attention is on understanding paid to the external violent activity of the groups, we must also develop a significant understanding of the non-violent internal activities as well. This paper provides a theoretical basis for understanding one of these process, organisational split.

By addressing splits from an organisational survival viewpoint, the paper challenges the previously held assumption that splits should be analysed as part of the “end of terrorism.”

Extant research suggests that managing strategic change has become a key managerial function and this duty encompasses changes in organizational product-market boundaries and organizational structure among many related organizational activities. The need to achieve strategic change arises because of major shifts in the external environment and the subsequent need for the organization to remain viable and competitive in the changed environment. Therefore, the purpose of this paper is to investigate if middle managers are likely to adopt authoritative style while implementing strategic change when they sense organizational survival.

“Sensemaking” literature led to development of the authors’ hypotheses and these were tested using the responses of 117 middle managers. The authors used survey-based instrument to collect data and used regression analysis to explicate the responses of the middle managers.

Results indicate that when middle managers sense that the survival of the organization is at stake, they are likely to choose an authoritative style. The authors also investigated the moderating role of organizational commitment, strategic posture of the top management team, and hostile business environment on the relationship between perception of survival urgency and the choice of authoritative implementation style. Only organizational commitment moderates this relationship.

The authors’ data collection was survey based and the authors used a single source for each questionnaire and this process may lead to possibilities of mono-method bias. However, steps were taken to reduce the resultant mono-method bias. The respondents are from a variety of industries and future research may focus on one specific industry.

The first implication of this study allows us to expand research focus on the adoption of authoritative style, a research area that is not explored very much. The second implication of the study is that middle managers tend to focus on their emotions when it comes to implementing strategic changes. Using arguments from sensemaking the authors show that the perception of need for survival or the perception that business environment is hostile will determine how strategic change could be implemented. Middle managers must be treated as more than just the implementers of the directives/fiats/orders/edicts that originate from the top.

Role of middle managers in strategic change management is critical and the authors suggest that the perception of organizational survival at risk leads to choice managerial style by middle managers.

The authors have combined ideas from both the strategic management and organizational development fields to understand successfully the implementation of strategic change in a survival urgency situation. In the past, the strategic management literature focused primarily on understanding strategy formulation process, and the process of implementation was generally neglected. The respondents are from a variety of industries. The analysis indicate that membership to any one firm was not impacting the results obtained by the authors and as such allows for results to generalized.

The purpose of this paper is to study the effect partner exits have on the survival chances of small and medium‐sized enterprises (SMEs). Moreover, the study aims at analyzing the influence of firm size, legal form, industry, type of change, and prior change on the effect of partner exits on the survival chances of SMEs.

An organizational ecology perspective to analyze the case of partner exits on the survival chances of SMEs is applied. Using event history models, the effect of such ownership changes is studied by the analysis of the life history of 19,629 SMEs in Germany between 1990 and 2005.

Results show that partner exits increase the mortality risk of organizations. This effect is moderated by specific organizational characteristics such as size, legal form and industry affiliation. Moreover, the harmful effect of partner exits increases if the partner was involved in the founding process of the organization. Finally, the results show that SMEs are not able to develop routines that reduce the effect of partner exits, on the contrary, the disruptive effect of partner exits increases with an increasing number of partner exits.

This paper shows how partner exits influence the survival chances of SMEs and how this negative effect is moderated by different firm characteristics. Moreover, the paper emphasizes the role of founders by showing that the exit of partners who were involved in the founding process of SMEs is especially harmful. Finally, focusing on multiple partner exits, the paper contributes to the question whether or not organizations learn how to manage fundamental change successfully.

The purpose of this paper is to investigate the relationship between inventory leanness and venture survival, and demonstrate the role of organizational environments in moderating this relationship from three dimensions: environmental complexity, dynamism and munificence.

Using a large panel data of more than 150,000 new Chinese small- and medium-sized enterprises between 2000 and 2007 in the manufacturing sector, the authors employ the method of survival analysis via an accelerated failure time model to explore the non-linear relationship between inventory leanness and the likelihood of survival. Moreover, the moderation model is applied to examine the moderating role of organizational environments.

At its core, this paper demonstrates the inverted U-shaped relationship between inventory leanness and the likelihood of survival. Furthermore, the authors find that environmental complexity and dynamism can negatively moderate this relationship, whereas environmental munificence acts the exact opposite.

Managers need to realize the trade-off between inventory leanness and venture survival. Collectively, more than 90 percent of new Chinese ventures have great potential to improve the likelihood of survival by implementing inventory leanness management. In addition, firms ought to be fully aware of the internal management and the external environments.

This is the first study to confirm the inverted U-shaped relationship between inventory leanness and the likelihood of survival, and empirically verify the moderating role of environmental complexity, dynamism and munificence on this relationship.

The purpose of this paper is to use a combination of resource-based theory and dynamic capabilities theory to explore the phenomenon of startup survival in an emerging entrepreneurial ecosystem.

The study has a phenomenological research design, with an exploratory scope and qualitative approach. It uses in-depth interviews to identify the perceptions of ecosystem agents about the phenomenon of survival.

This paper argues that startup survival should be studied as a construct that is reflected by four conditions: break-even point, accelerated growth, cash stock and continuous operation. Furthermore, it is formed by the interaction of five mainly interacting resources: human capital, social capital, entrepreneurial capital, organizational capital and the incubation process.

The study offers a holistic model of survival that could be applicable to incipient entrepreneurial ecosystems such as the Peruvian one. This model presents survival as a reflexive-formative construct and not as a dichotomic variable (enterprise operating/enterprise closed) as has been commonly considered in the literature.

En este documento se utiliza una combinación de la teoría basada en los recursos y la teoría de las capacidades dinámicas para explorar el fenómeno de la sobrevivencia de startups en un ecosistema emprendedor incipiente.

El estudio tiene un diseño de investigación fenomenológica, con un alcance exploratorio y un enfoque cualitativo. Utiliza entrevistas en profundidad para identificar las percepciones de los agentes del ecosistema sobre el fenómeno de la sobrevivencia.

En este documento se argumenta que la sobrevivencia de los startups debe estudiarse como un constructo que se refleja en cuatro condiciones: el punto de equilibrio, el crecimiento acelerado, el stock de efectivo y la operación continua. Además, se forma por la interacción de cinco categorías de recursos organizacionales: el capital humano, el capital social, el capital emprendedor, el capital organizacional y el proceso de incubación.

El documento ofrece un modelo holístico de sobrevivencia que podría ser aplicable en ecosistemas emprendedores incipientes como el peruano. Este modelo presenta a la sobrevivencia como un constructo reflexivo-formativo y no como una variable dicotómica (empresa en actividad / empresa cerrada) como se ha considerado comúnmente en la literatura.

Despite the growing importance of young, entrepreneurial ventures in modern economic systems, many such ventures fail quite early in their lifecycles. While both evolutionary theory and organizational learning theory yield important insights for the literature on young venture survival, questions remain as to why ventures facing similar environments experience differential rates of survival. In response, I propose a theory of entrepreneurial agency – defined as the emergence and/or transformation of firms, markets, industries governed by the evolving interaction of temporally situated, intentional strategic action with a malleable external environment – to complement prevailing viewpoints on the causes of young venture survival. My central thesis in this chapter is that to develop more comprehensive explanations of differential survival rates, a theory of entrepreneurial agency – illuminating the transformative potential of entrepreneurial action – is necessary to complement evolutionary perspectives in the literature on firm survival. With this objective in mind, I construct a theoretical model linking diverse perspectives on the duality of human agency and theories of environmental selection, and offer several theoretical and empirical suggestions to guide future research.

The proposed theoretical model offers a systematic approach to synthesize the fragmented research on organizational crisis, disasters and extreme events.

This paper offers a theoretical model of organizational responses to extreme threats.

The paper explains that organizations choose between hypervigilance (freeze), exit (flight), growth (fight) and dormancy (fright) when faced with extreme threats. The authors explain how the choice between these responses are informed by the interplay between slack and routines.

The study’s theoretical model contributes by explaining the nature of organizational responses to extreme threats and how the two underlying mechanisms, slack and routines, determine heterogeneity between organizations.

The authors advance four key managerial considerations: the need to distinguish between discrete and chronic threats, the critical role of hypervigilance in the face of extreme threats, the distinction between resources and routines during threat mitigation, and the recognition that organizational exit may sometimes be the most effective means for survival.

The novelty of this paper pertains to the authors’ use of the comparative developmental approach to incorporate insights from the study of individual responses to life-threatening events to explain organizational responses to extreme threats.

The objective of this paper is to understand the perspectives of the chief executive officer (CEO), chairman and managing director of Sasken Technologies Limited, Shri. Rajiv C. Mody who co-founded this high-technology firm, which has survived three decades of turbulence in technology and the market. This is an interview-based study focused on South Asian CEOs, with the goal of better understanding the cultural elements of strategic leadership and organizational values and its influence on organizational competitiveness and survival.

The paper uses primary data from one in-depth interview and supplements the analyses with secondary sources of data. The literature on the cultural dimension of long-term orientation (LTO) is discussed for understanding its possible linkage with strategic leadership, organizational values and thereby organizational competitiveness and survival.

This study found that the national cultural dimension of LTO of the South Asian leadership, as embedded, nurtured and practiced in the organization's values by the strategic leadership, plays an important role in explaining the organizational competitiveness and survival of South Asian firms while facing challenges and opportunities in a turbulent global business context.

This paper offers the perspective of a chairman and CEO of a high-technology firm with global experience and with a South Asian base of operations. His experiences in managing the organization add value to the discussion on managing business in South Asia.

This paper extends organizational ecology by making an attempt to disentangle the consequences of scale and scope economies for organizational survival under different product market configurations. We test our hypotheses by analyzing the mortality rates of 643 UK motorcycle producers during the 1899–1993 period. The findings obtained offer two specific contributions. First, by separating the performance impact of scale from scope economies we clarify the complex mechanisms behind the survival consequences of different organizational strategies. Second, we show how the intensity of both scale and scope forces is relative to the aggregate market-level product configuration. The implications of these findings for organizational ecology and strategic management, and their cross-fertilization, are further discussed.