Abstract   Extended Oligopoly models will be introduced and examined in which the firms might face capacity limits, thresholds for minimal and maximal moves, and antitrust thresholds in the case of partial cooperation. Similar situation occurs when there is an additional cost of output adjustment, which is discontinuous at zero due to set-up costs. In these cases the payoff functions of the...

When a firm changes its unique mix of products, markets, and technologies, some of employees’ previously acquired human capital depreciates. As a result, the firm can credibly renegotiate down employees’ quasi rents, which it had promised them as a reward for their human capital investments. We show that linking employees’ pay to total firm value, a widely observed phenonemon in practice, can m...

Technological or institutional change has proven to be a major cause for failure of established firms and history is full of such examples. In a globalised world the capability of a firm to reconfigure existing competencies and create new knowledge for innovation has emerged as dynamic capability to succeed. This paper points out the learning processes involved in the development of innovative ...

This paper uses a survey of 3,300 firms in 25 transition countries to shed light on the factors that influence restructuring by firms and their subsequent performance as measured by growth in sales and in sales per employee over a three-year period. We begin by surveying what a decade of transition has taught us about the factors that determine how firms respond to the new market environment. W...

The channels through which firms access and acquire new and relevant knowledge for their innovative activities is a critical issue for the geography and the management of innovation. In this respect, recent studies have suggested that the mobility of workers across firms is a primary source of new knowledge for the hiring firm and, more in general, of knowledge transmission across firms. Howeve...

What roles do firms play in technological change? A new technique involves interests uch as profit and growth. It also involves new knowledge. Just as economic development for Joseph Schumpeter is a new combination of existing elements [1961, pp. 65-66], so technological change combines and develops existing knowledge. To learn what roles firms play in generating (or blocking) technical change,...

All us We study how firms differ from their competitors using new time-varying measures of product similarity based on text-based analysis of firm 10-K product descriptions. This year-by-year set of product similarity measures allows us to generate a new set of industries in which firms can have their own distinct set of competitors. Our new sets of competitors explain specific discussion of hi...

Incumbent firms often face severe challenges when confronted with technological discontinuous change. However, interfirm cooperation between incumbents and new entrants has been suggested as one way that incumbents can adapt to radical technological change. In particular, the authors are interested in the question of how incumbent pharmaceutical firms go about selecting alliance partners from t...

While strategy and organizational researchers increasingly recognize that observers’ perceptions and beliefs about firms have a substantive effect on firms’ access to resources and performance, the processes through which these perceptions form are not well understood. To address this question, we examined how three new firms – Amazon.com, barnesandnoble.com and CDNow – that entered the emergin...