OkhmatovskiySuhomlinovaTihanyiJOM2018acceptedRG.pdf (489.96 kB)
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Legacy of the State: Prior Shared Experience and Survival of Spin-Offs From Restructured State Enterprises

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journal contribution
posted on 07.02.2019, 11:11 by O Suhomlinova, I Okhmatovskiy, L Tihanyi
Many organizations, especially in emerging economies, trace their origins to restructured state enterprises, and this study explores the implications of such origins for organizational adaptation to changing environmental conditions. We compare the activity choices and survival chances of spin-offs from restructured state enterprises with those of de novo organizations. We argue that prior shared experience of spin-offs’ managers and employees facilitates the redeployment of routines developed in parent state enterprises. This should predispose spin-offs to pursue familiar activities, but this choice is not completely predetermined, and its survival implications depend on the environmental conditions. Our empirical findings suggest that spinoffs from restructured state enterprises are less likely to engage in new activities than de novo organizations. However, those restructuring spin-offs that do engage in new activities before the regulatory regime shift significantly improve their survival chances after the shift. Moreover, we find that the detrimental effect of the regulatory regime shift and the beneficial effect of engaging in new activities are stronger for spin-offs from restructured state enterprises than for de novo organizations.

History

Citation

Journal of Management

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/School of Business

Version

AM (Accepted Manuscript)

Published in

Journal of Management

Publisher

SAGE Publications for Southern Management Association

issn

0149-2063

eissn

1557-1211

Acceptance date

19/09/2018

Copyright date

2018

Available date

07/02/2019

Publisher version

https://journals.sagepub.com/doi/10.1177/0149206318808601

Language

en