Can the Survivor Principle Survive Diversification?

• 成果类型: Article
• 署名作者: Lien, Lasse B.; Klein, Peter G.
• 署名单位: Norwegian School of Economics (NHH); University of Missouri System; University of Missouri Columbia
• 刊物名称: ORGANIZATION SCIENCE
• ISSN/ISSBN: 1047-7039
• DOI: 10.1287/orsc.1120.0793
• 发表日期: 2013
• 页码: 1478-1494
• 关键词: Diversification; EXIT; relatedness; survivor principle

摘要

The survivor principle holds that the competitive process weeds out inefficient firms, so that hypotheses about efficient behavior can be tested by observing what firms actually do. This principle underlies a large body of empirical work in strategy, economics, and management. But do competitive markets really select for efficient behavior? Is the survivor principle reliable? We evaluate the survivor principle in the context of corporate diversification, asking if survivor-based measures of interindustry relatedness are good predictors of firms' decisions to exit particular lines of business, controlling for other firm and industry characteristics that affect firms' portfolio choices. We find strong, robust evidence that survivor-based relatedness is an important determinant of exit. This empirical regularity is consistent with an efficiency rationale for firm-level diversification, though we cannot rule out alternative explanations based on firms' desire for legitimacy by imitation and attempts to temper multimarket competition.