Interdependence and Performance: A Natural Experiment in Firm Scope
| Autor: | Gabriel Natividad, Evan Rawley |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
050208 finance
Natural experiment Organizational economics Strategy and Management media_common.quotation_subject 05 social sciences Theory of the firm Fishing Management Science and Operations Research Interdependence Management of Technology and Innovation Microdata (HTML) 0502 economics and business Strategic management Business Business and International Management 050203 business & management Industrial organization Internal organization media_common |
| Zdroj: | Strategy Science. 1:12-31 |
| ISSN: | 2333-2077 2333-2050 |
| DOI: | 10.1287/stsc.2015.0004 |
| Popis: | This paper shows how interdependencies influence performance following a reduction in firm scope. We test the predictions of the theory using detailed microdata on every Peruvian fishing firm before and after a regulatory ban on mackerel fishing, finding that a reduction in the scope of activities causes the productivity of firms’ legacy anchovy operations to fall sharply, before recovering in the long run. The results are most pronounced for firms with the strongest interdependencies between activities. Moreover, we find evidence that the persistence of the productivity decline is explicitly tied to a failure to adapt quickly following the ban. Consistent with our conceptual characterization, the evidence suggests that interdependencies between activities simultaneously create benefits as well as costs, but that costs are more persistent when the firm reduces its scope of activities. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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