The fates of De Novo and De Alio producers in the American Automobile Industry 1885–1981
Article first published online: 5 JUL 2007
Copyright © 1996 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 17, Issue S1, pages 117–137, Summer 1996
How to Cite
Carroll, G. R., Bigelow, L. S., Seidel, M.-D. L. and Tsai, L. B. (1996), The fates of De Novo and De Alio producers in the American Automobile Industry 1885–1981. Strat. Mgmt. J., 17: 117–137. doi: 10.1002/smj.4250171009
- Issue published online: 5 JUL 2007
- Article first published online: 5 JUL 2007
- entry mode;
- organizational ecology;
- automobile industry;
- organizational capabilities
Do laterally diversifying firms outlast new startups? Or does organizational inertia give the advantage to startups? We explore these questions here using the experiences of American automobile manufacturers from 1885 through 1981. We advance and test an integrative model that allows the organizational effects of entry mode to vary across the firm's life cycle. We also compare the life chances of laterally diversifying firms by industry of origin, including especially bicycle, carriage and engine manufacturers. Findings show the potentially integrative value of an evolutionary approach to strategy.