Flexible Production and Entry: Institutional, Technological, and Organizational Determinants
| Autor: | Sharon Belenzon, Andrea Patacconi, Victor Manuel Bennett |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
050208 finance
ComputingMilieux_THECOMPUTINGPROFESSION business.industry Strategy and Management 05 social sciences Management Science and Operations Research humanities Software Management of Technology and Innovation 0502 economics and business Production (economics) Business and International Management business health care economics and organizations 050203 business & management Industrial organization |
| Zdroj: | Strategy Science. 4:193-216 |
| ISSN: | 2333-2077 2333-2050 |
| Popis: | Academics, the media, and policy makers have all raised concerns about the implications of human workers being replaced by machines or software. Few have discussed the implications of the reverse: firms’ ability to replace capital with workers. We show that this flexibility can help new firms overcome uncertainty and increase entrepreneurial entry. We develop a simple real options model where permissive labor regulations allow firms to take advantage of capital–labor substitutability by replacing “rigid” capital with “flexible” labor. The model highlights institutional, technological, and organizational preconditions to using this flexibility. Using a large and comprehensive data set on entry by stand-alone firms and group affiliates, we provide evidence in support of the model. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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