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Performance Feedback, Firm Resources, and Strategic Change

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  • Thorsten Grohsjean
  • Tobias Kretschmer
  • Nils Stieglitz

Abstract

Combining insights from the behavioral theory of the firm and the resource-based view we investigate the antecedents of strategic change in fast-changing environments. We hypothesize the independent and joint effects of performance feedback and of flexible and specific resources on strategic change. Using an unbalanced panel of 493 publisher-year observations we find that negative performance feedback triggers more strategic change. Further, while flexible resources have no direct influence on strategic change they weaken the negative relationship between performance feedback and strategic change. Finally, we find that larger stocks of specific resources lead to less strategic change.

Suggested Citation

  • Thorsten Grohsjean & Tobias Kretschmer & Nils Stieglitz, 2011. "Performance Feedback, Firm Resources, and Strategic Change," DRUID Working Papers 11-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:11-02
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    More about this item

    Keywords

    Performance feedback; strategic change; resource-based-view; video game industry;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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