TY - CHAP
T1 - Direct and Indirect Effects of Product Portfolio on Firm Survival in the Worldwide Optical Disk Drive Industry, 1983-1999
AU - Khessina, Olga M.
N1 - Funding Information:
This research was supported by Jr. Faculty Research Fellowship provided by McDonough School of Business at Georgetown University. The study is a part of the research project directed by Glenn Carroll and David McKendrick, under the auspices of the Information Storage Industry Center, U.C. San Diego funded by the Alfred P. Sloan Foundation.
PY - 2006
Y1 - 2006
N2 - 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.
AB - 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.
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U2 - 10.1016/S0742-3322(06)23018-3
DO - 10.1016/S0742-3322(06)23018-3
M3 - Chapter
AN - SCOPUS:33745726416
SN - 0762313382
SN - 9780762313389
T3 - Advances in Strategic Management
SP - 591
EP - 630
BT - Ecology and Strategy
A2 - Baum, Joel
A2 - Dobrev, Stanislav
A2 - Witteloostuijn, Arjen
ER -