Survival of businesses using collaborative relationships to commercialize complex goods

Article Abstract:

A study was conducted to examine the survivability of businesses that enter into collaborative relationships with other firms to commercialize technologically complex goods. Data were gathered on the survival of 973 firms that commercialized applications software in the American hospital software systems industry during the 1961-1991 period. The data collected differentiated between development-oriented and marketing-oriented collaborative relationships. Results showed that firms that got involved in development-oriented and marketing-oriented collaborative relationships are more likely to survive than independent firms when there is gradual environmental changes. However, collaborative businesses are sometimes vulnerable to being acquired by other firms. Businesses with collaborative relationships for activities that are central to a sudden environmental shock are more likely to shut down after the shock.

Business failures

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Evolutionary diffusion: internal and external methods used to acquire encompassing, complementary, and incremental technological changes in the lithotripsy industry

Article Abstract:

Results of a study of technological diffusion revealed that differences among the internal and interorganizational approaches used by companies for knowledge acquisition are influenced by technological change. This analysis examined 44 cases of technological change that transformed medical lithotripters from 1989 to 1991. Findings showed that the different types of technological innovation have varying effects on the current capabilities of firms. Moreover, know-how required for comprehensive technological change was mostly acquired via equity-based interorganizational relationships, know-how for complementary technological changes was earned via non-equity interorganizational relationships while know-how for incremental changes was acquired via internal R&D. Implications for practical application and further studies are discussed.

Electromedical and Electrotherapeutic Apparatus Manufacturing, Electromedical equipment, Lithotripters, Innovations, Technological innovations, Medical equipment industry, Surgical equipment and supplies industry, Diffusion of innovations, Lithotripsy

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Precarious collaboration: business survival after partners shut down or form new partnerships

Article Abstract:

Firms that enter formal collaboration with other businesses and eventually become dependent on their partners are faced with two potential problems. One is when their partners shut down and the other is when the partners create new partnerships with other businesses. A study was conducted to examine the failure rate of businesses when their partners either shut down or form a new collaborative agreement. The study focused on the relationships formed in the hospital software systems industry from 1961 to 1991. Results showed that businesses faced greater risk of dissolution if they did not create new partnerships after partners shut down or formed new collaborations. Implications for an evolutionary theory of business strategy and performance are discussed.

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