Competitive dynamics of interfirm rivalry
Article Abstract:
In this study, we examined how firm-specific competitive conditions influence firms' patterns of market entry and exit, focusing on two features of firms' competitive conditions: market domain overlap, which measures the potential for competition, and multimarket contact, which measures the potential for mutual forbearance. A dynamic analysis of California commuter airlines from 1979 through 1984 showed that increases in market domain overlap raised airlines' rates of market entry and exit, but increases in multimarket contact lowered them, especially in markets clearly dominated by a single airline. Thus, paradoxically, close competitors are not the most intense rivals: airlines that meet in multiple markets are less aggressive toward each other than those that meet in one or a few markets. (Reprinted by permission of the publisher.)
Publication Name: Academy of Management Journal
Subject: Business, general
ISSN: 0001-4273
Year: 1996
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Toward an institutional ecology of organizational founding
Article Abstract:
In this study, we demonstrate how the ecological and institutional characteristics of organizational niches affect the likelihood of organizational foundings. We describe and measure key ecological, institutional, organizational, and spatial properties of organizational niches. Our theoretical framework emphasizes how the effects of ecological and institutional processes vary both within and between nonprofit and for-profit sectors and across levels of geographic aggregation. An analysis of day care center founding in Metropolitan Toronto supports our main theoretical expectations. Thus studying multiple dimensions independently and interactively provides a richer, more comprehensive treatment of the context of organizational founding. (Reprinted by permission of the publisher.)
Publication Name: Academy of Management Journal
Subject: Business, general
ISSN: 0001-4273
Year: 1996
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Procedural justice in entrepreneur-investor relations
Article Abstract:
This research used a procedural justice perspective to examine the impact of entrepreneurs' management of information flows in the form of feedback and influence on entrepreneur-investor relations. We conducted both an experiment with master's-level business students and a field survey of venture capitalists regarding their relations with the CEOs of their portfolio companies. The findings revealed the importance of timely feedback in promoting positive relations between investor and entrepreneur. Together, the studies provide strong evidence for the usefulness of procedural justice theory as a framework for understanding the management of interorganizational relations involving new ventures. (Reprinted by permission of the publisher.)
Publication Name: Academy of Management Journal
Subject: Business, general
ISSN: 0001-4273
Year: 1996
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