Shifting gears, shifting niches: Organizational inertia and change in the evolution of the US automobile industry, 1885-1981

Dobrev, S.; Kim, T-Y.; Carroll, G.R.

doi:10.1287/orsc.14.3.264.15163

Shifting gears, shifting niches: Organizational inertia and change in the evolution of the US automobile industry, 1885-1981

Dobrev, S.; Kim, T-Y.; Carroll, G.R.

Authors

S. Dobrev

T-Y. Kim

G.R. Carroll

Abstract

We examine how experiential learning affects organizational change and its consequences on firm mortality. We develop hypotheses about the interactions of experiences with a specific type of organizational change on the one hand, and environmental stability, organizational size, and organizational niche width on the other hand. Our findings draw from analysis of the U.S. automobile industry between 1885 and 1981 and support the general prediction that "process" effects of change in the organizational core elevate the hazard of failure. We also find that a dynamic interpretation of organizational environments as comprised of other organizations helps to explicate the interplay between organization and environmental forces that shape the occurrence and outcome of transformation.

Citation

Dobrev, S., Kim, T., & Carroll, G. (2003). Shifting gears, shifting niches: Organizational inertia and change in the evolution of the US automobile industry, 1885-1981. Organization Science, 14(3), 264-282. https://doi.org/10.1287/orsc.14.3.264.15163

Journal Article Type	Article
Publication Date	May 1, 2003
Deposit Date	Mar 22, 2007
Publicly Available Date	Sep 22, 2014
Journal	Organization Science
Print ISSN	1047-7039
Electronic ISSN	1526-5455
Publisher	Institute for Operations Research and Management Sciences
Peer Reviewed	Peer Reviewed
Volume	14
Issue	3
Pages	264-282
DOI	https://doi.org/10.1287/orsc.14.3.264.15163
Keywords	Inertia, Organizational change, Niche, Automobile industry.