Resources, environmental change, and survival: Asymmetric paths of young independent and subsidiary organizations

Steven W. Bradley, Howard Aldrich, Dean A. Shepherd, Johan Wiklund

Research output: Contribution to journalArticle

78 Scopus citations

Abstract

Using an evolutionary model and a sample of 7,166 firms in the manufacturing and technology sectors of Sweden, we find that surviving organizations founded independent of a parent organization have lower long-term failure rates than their protected subsidiary counterparts. Specifically, we find that subsidiary organizations have low mortality rates when compared to independent organizations, but that their mortality rates increase more rapidly during a severe economic downturn. We also find evidence that surviving independent organizations are more capable than subsidiary organizations of using their resources to reduce mortality rates during an environmental jolt. Overall, our findings strengthen the notion that organizational adaptation is linked not only to ecological and strategic processes but also to organizational structure.

Original languageEnglish (US)
Pages (from-to)486-509
Number of pages24
JournalStrategic Management Journal
Volume32
Issue number5
DOIs
StatePublished - May 1 2011

Keywords

  • adaptation
  • environmental jolt
  • failure
  • parent
  • resources
  • structure

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Fingerprint Dive into the research topics of 'Resources, environmental change, and survival: Asymmetric paths of young independent and subsidiary organizations'. Together they form a unique fingerprint.

  • Cite this