Firm Survival and Industry Evolution in Vertically Related Populations

Figueiredo, John M. de; Silverman, Brian S.

doi:10.2139/ssrn.1961598

Cited by 7 publications

(10 citation statements)

References 37 publications

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“…2 Barriers to copying relational contracts may also rest in the tacit knowledge required to create these contracts (Winter 2006). 3 This section draws heavily on de Figueiredo and Silverman (2012). For further discussion of the laser printer and laser engine industries, see de Figueiredo and Kyle (2006).…”

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confidence: 99%

On the Genesis of Interfirm Relational Contracts

Figueiredo

Silverman

2017

Strategy Science

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Please scroll down for article-it is on subsequent pagesWith 12,500 members from nearly 90 countries, INFORMS is the largest international association of operations research (O.R.) and analytics professionals and students. INFORMS provides unique networking and learning opportunities for individual professionals, and organizations of all types and sizes, to better understand and use O.R. and analytics tools and methods to transform strategic visions and achieve better outcomes. For more information on INFORMS, its publications, membership, or meetings visit http://www.informs.org STRATEGY SCIENCEVol. 2, No. 4, December 2017, pp. 234-245 http://pubsonline.informs.org/journal/stsc/ Abstract. In a wide range of circumstances, relational contracts can enable strategies that might not otherwise be possible. While most studies focus on the maintenance and performance of existing relational contracts, this paper explores the origins of interfirm relational contracts, focusing on how firms go from no contract to a relational contract. Relying on a microanalytic investigation of the birth of the desktop laser printer industry, we identify a combination of four emergent and deliberate steps that enhance the probability that a relational contract will arise: preexisting personal relationships, capability complementarity, cultural similarity, and pursuit of noncompeting but mutually reinforcing revenue models. We consider how each of these factors helps to undergird the parties' clarity and credibility to increase the probability of the genesis of a relational contract, which in turn enables collaborating firms to undertake successful, difficult-to-imitate strategies.

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On the Genesis of Interfirm Relational Contracts

Figueiredo

Silverman

2017

Strategy Science

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“…In some cases, localization economies related to downstream industries might offer greater potential to entrants than localization economies related to the focal industry. It also underlines that analyses of ecosystems should include both upstream and downstream industries in their considerations of critical networks for firms in an industry (Adner, ; De Figueiredo and Silverman, ).…”

Section: Discussionmentioning

confidence: 99%

Bridging Knowledge Resources: The Location Choices of Spinouts

Adams

Fontana

Malerba

2017

Strategic Entrepreneurship

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Research summary This study develops a framework that links a typology of spinouts with distinct product/market strategies and the characteristics of localization economies to study location choice. Specifically, we examine focal spinouts and user‐industry spinouts entry into generic and market‐specific product categories and localization economies related to the focal industry and to downstream, user industries. We test our hypotheses on a sample of 413 spinouts in the U.S. semiconductor industry from 1997 to 2007. Our findings show that focal spinouts make different location choices than user‐industry spinouts and that such choices are mediated by product strategy at entry. Our results contribute to the literatures on location choice and strategic entrepreneurship. Managerial summary This study concerns the location choices of different types of spinouts at the moment of entry. Our study suggests that location may be a key decision for entrepreneurs to increase their exposure to potential knowledge spillovers. Location, therefore, should not be taken as a given in either studies or business plans related to entrepreneurship. Rather, location needs to be treated as a strategic choice to be exercised by new firms as they enter an industry. Our research also underscores the importance of downstream industries both as a source of entrepreneurship and as a source of knowledge. In some cases, localization economies related to downstream industries might offer greater potential to entrants than localization economies related to the focal industry. Copyright © 2016 Strategic Management Society.

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“…Along this line, several papers investigate the relationship between 'observed' organizational choices and economic performance (Silverman et al, 1997;Mayer, 2000;Nickerson and Silverman, 2003;Yvrande-Billon and Saussier, 2005;Novak and Stern, 2008;Kloyer, 2011;Helm and Kloyer, 2004). Other papers examine the same relation at the macrolevel, by analyzing how the structure of vertical relations within an industry affects the survival rates or firms within the industry (De Figueiredo and Silverman, 2012;Argyres and Bigelow, 2007).…”

Section: Introductionmentioning

confidence: 99%

Vertical Integration, Organizational Governance, and Firm Performance: Evidence from Italian Business Groups

Cainelli

Iacobucci

2014

Manage Decis Econ

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Assuming transaction cost economics as a normative tool, we investigate the relationship between firms' 'observed' vertical integration choices and their economic performance. We use a two-stage methodology: in the first, a measure of governance misalignment is computed as a difference between the governance form (i.e., ownership or outsourcing) predicted by transaction cost economics and the form actually observed; the second stage consists of estimating a performance equation where the misalignment variable is introduced together with a set of independent variables. Compared with previous studies, we introduce two novelties: we use the business group as the unit of analysis to detect the ownership of vertically related productions; we assess the moderating role of geographic agglomeration in reducing the need of vertical integration. Our results confirm the importance of technology and price uncertainty in influencing vertical integration; moreover, the misalignment variable is significant in the case of profitability, but not in the case of growth. Copyright

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Firm Survival and Industry Evolution in Vertically Related Populations

Cited by 7 publications

References 37 publications

On the Genesis of Interfirm Relational Contracts

On the Genesis of Interfirm Relational Contracts

Bridging Knowledge Resources: The Location Choices of Spinouts

Vertical Integration, Organizational Governance, and Firm Performance: Evidence from Italian Business Groups

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