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

Businesses often benefit by forming alliances with other firms but risk becoming dependent on their partners. We discuss two situations in which dependence may create serious problems: first, if a partner shuts down and. second, if a partner forms a relationship with a new partner. We examine collaborative relationships formed by businesses operating in the U.S. hospital software systems industry during the 1961–91 period. We find that businesses faced increased risk of dissolution if they did not form new partnerships after partners shut down or formed collaborative relationships with new partners. The results have implications for developing an evolutionary theory of business strategy and performance. Our approach implies that the performance of a focal business often depends on how the strategies of its business partners evolve over time. An evolutionary theory of strategy must incorporate key characteristics of actions and relationships throughout a web of business partnerships. The dual nature of interfirm relationships, which both help a business survive at one time and inhibit its ability to adapt at another, helps explain why so many successful businesses fail when their environments change.     

Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value

Entry order analysis often shows that early entrants to an industry or technical subfield of an industry outperform laggards. Some studies, though, have found that late entrants prevail. This paper tests dual-clock hypotheses of entry order effects on performance, measured both as market share and survival. One entry clock records the entry of all entrants to a new technical subfield within an industry, while a second clock records the entry of industry incumbents. Relative to the appropriate clock, early entrants are predicted to outperform laggards, but when entry is measured on only one clock, the estimated influences may be inaccurate. Error will be particularly likely if a study contains a survivor bias. The study, which finds entry timing trade-offs between market share and survival, is generalizable to cases in which a plausible set of conditions is found.     

Exploring the relationship between information and communication technology (ICT) and productivity: Evidence from Australian farms

The relationship between information and communication technology (ICT) and farm productivity remains unresolved and often debated with limited evidence. While ICT is generally accepted by many to be a positive driver of productivity, others question it. Realistically, truth is likely somewhere in between. Certain ICT investments are likely to facilitate productivity improvement, whereas others may offer some other benefits such as improved safety or reduced emissions. It is also undeniable that some ICT investments may fail or offer little more than a temporary novelty. Using a sample of Australian farm-level data, analysis in this paper finds a positive relationship between ICT investment and productivity. Specifically, the use of precision agriculture and machinery infused with ICT (such as GPS autosteering tractors) is found to be statistically significant. Moreover, digital internet access or access to the National Broadband Network (NBN) is found to be beneficial—and conversely, farms that reported mobile and internet connectivity problems tended to achieve lower productivity.