Resources, environmental change, and survival: asymmetric paths of young independent and subsidiary organizations
Article first published online: 30 SEP 2010
Copyright © 2010 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 32, Issue 5, pages 486–509, May 2011
How to Cite
Bradley, S. W., Aldrich, H., Shepherd, D. A. and Wiklund, J. (2011), Resources, environmental change, and survival: asymmetric paths of young independent and subsidiary organizations. Strat. Mgmt. J., 32: 486–509. doi: 10.1002/smj.887
- Issue published online: 23 MAR 2011
- Article first published online: 30 SEP 2010
- Accepted manuscript online: 2 SEP 2010 08:05AM EST
- Manuscript Revised: 19 AUG 2010
- Manuscript Received: 11 SEP 2008
- environmental jolt;
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. Copyright © 2010 John Wiley & Sons, Ltd.