Donald E. Hatfield

THE EFFECTS OF CORPORATE RESTRUCTURING ON AGGREGATE INDUSTRY SPECIALIZATION

It has been widely argued that the purpose of corporate restructuring during the 1980s was to produce a population of more industry-specialized, competitive firms in response to intensifying global competition. A number of studies show that corporate restructuring resulted in increased corporate focus during the 1980s. However, no study has yet examined whether corporate restructuring resulted in increased specialization at the industry level during the 1980s. This study examines this issue. First, we examine whether or not aggregate industry specialization increased during the 1980s. That is, we ask: did the average firm in any given U.S. industry become more or less specialized to that industry during the 1980s? Second, we examine whether corporate restructuring was a significant determinant of change in aggregate industry specialization during the 1980s. Using a sample of 686 four-digit SIC industries and 64 two-digit industry groups, this study finds that aggregate industry specialization declined very slightly at both the four-digit and two-digit level between 1981 and 1989. This study also finds that sell-offs of establishments through corporate control transactions or interfirm asset sales had no significant effect on aggregate industry specialization.

Doomed from the start : What is the value of selecting a future dominant design?

This study investigates how important it is for a firm to select what turns out to be a dominant design in a technology‐driven industry. Using the personal computer industry as a case study, this research shows that firms are not doomed when their entry design choices turn out to be ‘wrong.’ For early entrants, we found that switching to the dominant design is associated with increased chances of survival and market share. Contrary to our expectations, we found that even later entrants that switched to the dominant design also enjoyed higher survival rates and greater market position. Copyright

Corporate Restructuring and the Consolidation of US Industry

This study examines the impact of corporate restructuring measured at the industry level on industry concentration in 695 four-digit U.S. industries in the basic, manufacturing, and services sectors between 1981 and 1989. The results show a modest increase in median industrial concentration in sample industries between 1981 and 1989. The authors find no evidence that selloffs of assets at the industry level through horizontal mergers, acquisitions, and interfirm asset sales increased U.S. industrial concentration during the 1980s. Copyright 1996 by Blackwell Publishing Ltd.

Facing the uncertain environment from technological discontinuities: hedging as a technology strategy

Abstract Emerging markets are prone to technological uncertainty. Several approaches have been proposed as possible strategies for dealing with these uncertainties. The implications of adopting a hedging strategy are investigated in an industry where a dominant design has yet to emerge. Using the personal computer (PC) industry as a case study, this research shows that (1) firms are most likely to hedge prior to the emergence of a dominant design, (2) hedging is related to increased survival rates, and (3) hedging is related to higher market share.

Corporate control through the criminal system — An alternative proposal

Corporate violations of the law are occurring with increasing frequency and with increasing public attention. Solutions to date have proved ineffectual because of the problem of determining whom is to be punished for the offense of the corporation. Instead of individual jail terms or corporate fines, we propose that the dissolution of the corporation be considered as a more effectual means of conforming corporate behavior to the norms of the legal system.

The role of top management teams in the development of resources and capabilities

In this manuscript, we bridge two important, but often separate, streams of strategy research on the core competence perspective and upper echelons theory. We develop a model of how top management team characteristics influence the choices made concerning resources and capabilities pursued by pharmaceutical firms and how those choices impact innovative productivity. In particular, we propose how top management team tenure, education level and functional background, as well as heterogeneity in top management team tenure and functional background, influence product line breadth and the frequency of new product market entry, in-house R&D efforts and strategic alliances.

The location of corporate research and innovative productivity in the US pharmaceutical industry

In an exploratory study, we investigate the criticism directed towards diversification by testing whether having a corporate research laboratory helps firms overcome potential dissynergy problems within a diversified setting in the pharmaceutical industry. We find that a separate corporate research laboratory does in fact enhance innovative productivity of diversified firms.

TAPPING REGIONAL AND CORPORATE SCIENTIFIC KNOWLEDGE FOR INNOVATION: THE MODERATING ROLE OF SCIENTIFIC KNOWLEDGE DURATION

We develop and test how business entities tap regional and corporate scientific knowledge for their innovations in a revolutionary technology. Building on the knowledge-based view of the firm, we argue that while both regional and corporate scientific knowledge may improve a business entitys innovation, it is the business entitys own accumulative research efforts that improve its ability to absorb regional scientific knowledge. In contrast, we expect and find that the longer the entity has been researching the revolutionary technology, the less likely corporate scientific knowledge will impact the focal entitys innovation. Our results support this theory regarding the moderating effect of a business entitys own accumulative research efforts with corporate scientific knowledge but not with regional knowledge. Further, we find different effects between regional scientific knowledge and innovation among single and multi-location firms.

Dynamics of Competitive Rivalry

This energetic lecture consist of a paper fight and another exercise to provide background, methodology, and findings from research that has empirically examined competitive dynamics. Foundational to this stream of research are several literatures including game theory and the Structure-Conduct-Performance paradigm. Unlike these literatures, however, research in competitive dynamics directly measures and analyzes firm action and rival action using a methodology of examining competitive actions identified through a structured content analysis of newspapers and trade magazines for firms in an industry. This robust methodology has enabled better understanding of competitive dynamics and the outcomes of this rivalry. It also has very practical implications. Thus, students also do an exercise in which they analyze actual competitive data between Coke and Pepsi to illustrate differences in their competitive behavior and the strengths and weaknesses of each of their approaches.