Publications

Journal Article

Past research has given contradictory answers to the question of how strategic change is linked to firm size and performance.

This paper resolves the contradictory predictions of performance feedback theory and threat rigidity theory by positing that small and large firms have distinct responses to performance because of differences in risk aversion and internal rigidity.

To examine these differences, it is necessary to distinguish risk taking from rigidity in the strategic position, which is accomplished by separate analysis of the amount of resource acquisition and the difference of acquired and existing resources.

Analysis of data from the shipping industry supports the predicted interactions of firm size and performance.