The parenting paradox: How multibusiness diversifiers endorse disruptive technologies while their corporate children struggle

Donald Lange, Steven Boivie, Andrew D. Henderson

Research output: Contribution to journalArticle

33 Scopus citations

Abstract

0We examine the role of multibusiness corporations in the development of young industries. We propose and find that established firms diversifying into a new industry that owes its birth to a disruptive technological change give birth to corporate children that are both weaker survivors than freestanding start-ups and stronger legitimators of the industry as a whole. Thus, corporate parents promote the survival of other organizations in this type of young industry while hindering the survival of their own offspring. Using event history models, we examine this paradox in the U.S. personal computer industry from 1975 through 1994.

Original languageEnglish (US)
Pages (from-to)179-198
Number of pages20
JournalAcademy of Management Journal
Volume52
Issue number1
DOIs
StatePublished - Feb 2009

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ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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