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The Dynamics of Standing Still: Firestone Tire & Rubber and the Radial Revolution

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  • Sull, Donald N.

Abstract

Business historians have illuminated how first movers in many emerging industries secure an enduring leadership position, but have devoted less attention to the processes by which industry leaders relinquish their dominance. This paper examines why rubber industry leader Firestone Tire & Rubber failed to respond effectively to new technology and foreign competition. The author argues that Firestone did not respond by doing nothing, but rather accelerated activities that had contributed to its past success. Firestone's response was constrained by managers' existing strategic frames and values, and the company's processes and long-standing relationships with customers and employees.

Suggested Citation

  • Sull, Donald N., 1999. "The Dynamics of Standing Still: Firestone Tire & Rubber and the Radial Revolution," Business History Review, Cambridge University Press, vol. 73(3), pages 430-464, October.
    • Handle: RePEc:cup:buhirw:v:73:y:1999:i:03:p:430-464_07
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    Cited by:

    1. Emilie R. Feldman, 2016. "Corporate Spin-Offs and Capital Allocation Decisions," Strategy Science, INFORMS, vol. 1(4), pages 256-271, December.
    2. Muel Kaptein, 2023. "A Paradox of Ethics: Why People in Good Organizations do Bad Things," Journal of Business Ethics, Springer, vol. 184(1), pages 297-316, April.
    3. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    4. Hubert Gatignon & Michael L. Tushman & Wendy Smith & Philip Anderson, 2002. "A Structural Approach to Assessing Innovation: Construct Development of Innovation Locus, Type, and Characteristics," Management Science, INFORMS, vol. 48(9), pages 1103-1122, September.
    5. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.
    6. Koichi Nakagawa & Yoichi Matsumoto, 2015. "Issue selection flexibility and strategic rigidity: Lessons from Sharp's crisis," Discussion Papers in Economics and Business 15-24, Osaka University, Graduate School of Economics.
    7. Andrew A. King & Christopher L. Tucci, 2002. "Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities," Management Science, INFORMS, vol. 48(2), pages 171-186, February.
    8. Omid Omidvar & Mehdi Safavi & Vern L. Glaser, 2023. "Algorithmic Routines and Dynamic Inertia: How Organizations Avoid Adapting to Changes in the Environment," Journal of Management Studies, Wiley Blackwell, vol. 60(2), pages 313-345, March.
    9. O'Reilly, Charles A., III & Tushman, Michael, 2007. "Ambidexterity as a Dynamic Capability: Resolving the Innovator's Dilemma," Research Papers 1963, Stanford University, Graduate School of Business.
    10. Christopher Marquis & András Tilcsik, 2016. "Institutional Equivalence: How Industry and Community Peers Influence Corporate Philanthropy," Organization Science, INFORMS, vol. 27(5), pages 1325-1341, October.
    11. Sasanka Sekhar Chanda & Sougata Ray, 2015. "Optimal exploration and exploitation: the managerial intentionality perspective," Computational and Mathematical Organization Theory, Springer, vol. 21(3), pages 247-273, September.
    12. Ruckes, Martin & Rønde, Thomas, 2010. "Dynamic incentives in organizations: Success and inertia," Working Paper Series in Economics 7, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    13. Li, Xu, 2023. "When firms may benefit from sticking with an old technology," LSE Research Online Documents on Economics 120131, London School of Economics and Political Science, LSE Library.
    14. Rodrigo Canales, 2011. "Rule bending, sociological citizenship, and organizational contestation in microfinance," Regulation & Governance, John Wiley & Sons, vol. 5(1), pages 90-117, March.
    15. Sarkar, Soumodip & Osiyevskyy, Oleksiy & Clegg, Stewart R., 2018. "Incumbent capability enhancement in response to radical innovations," European Management Journal, Elsevier, vol. 36(3), pages 353-365.
    16. Clark G. Gilbert, 2006. "Change in the Presence of Residual Fit: Can Competing Frames Coexist?," Organization Science, INFORMS, vol. 17(1), pages 150-167, February.
    17. Wendy K. Smith & Michael L. Tushman, 2005. "Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams," Organization Science, INFORMS, vol. 16(5), pages 522-536, October.

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