IDEAS home Printed from https://ideas.repec.org/p/ssa/lemwps/2004-12.html
   My bibliography  Save this paper

Chandlerian Firms vs. Entrepreneurship

Author

Listed:
  • Alfonso Gambardella
  • Marco Giarratana

Abstract

This paper employs an original dataset for 146 US metropolitan areas to test some propositions that characterize two different models of organizing firms and industries: the managerial firm, epitomized by the work of Alfred Chandler, and the entrepreneurial system, recently highlighted by many authors. We discuss the reasons why, compared to the entrepreneurial systems, the Chandlerian world entails a lower spread of managerial salaries, greater product diversification, and a greater degree of products “exploitation” vs “exploration”. If there are knowledge spillovers, the entrepreneurial model produces higher expected managerial salaries. By providing systematic evidence about their characteristics, our study contributes to our understanding of the nature, the comparative advantages, and the potential division of labor between the two models.

Suggested Citation

  • Alfonso Gambardella & Marco Giarratana, 2004. "Chandlerian Firms vs. Entrepreneurship," LEM Papers Series 2004/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2004/12
    as

    Download full text from publisher

    File URL: http://www.lem.sssup.it/WPLem/files/2004-12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Holmstrom, Bengt, 1989. "Agency costs and innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 12(3), pages 305-327, December.
    2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    3. Christoph H. Loch & Christian Terwiesch & Stefan Thomke, 2001. "Parallel and Sequential Testing of Design Alternatives," Management Science, INFORMS, vol. 47(5), pages 663-678, May.
    4. Holmström, Bengt, 1989. "Agency Costs and Innovation," Working Paper Series 214, Research Institute of Industrial Economics.
    5. Steven Klepper & Sally Sleeper, 2005. "Entry by Spinoffs," Management Science, INFORMS, vol. 51(8), pages 1291-1306, August.
    6. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    7. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 145-181.
    8. Will Mitchell, 1991. "Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 85-100, February.
    9. Bresnahan,Timothy & Gambardella,Alfonso (ed.), 2004. "Building High-Tech Clusters," Cambridge Books, Cambridge University Press, number 9780521827225.
    10. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring.
    11. Olav Sorenson, 2005. "Social networks and industrial geography," Springer Books, in: Uwe Cantner & Elias Dinopoulos & Robert F. Lanzillotti (ed.), Entrepreneurships, the New Economy and Public Policy, pages 55-69, Springer.
    12. Audretsch, David B & Thurik, A Roy, 2001. "What's New about the New Economy?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(1), pages 267-315, March.
    13. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    14. Pankaj Ghemawat, 1991. "Market Incumbency and Technological Inertia," Marketing Science, INFORMS, vol. 10(2), pages 161-171.
    15. Jeffrey Macher & David Mowery & Timothy Simcoe, 2002. "e-Business and Disintegration of the Semiconductor Industry Value Chain," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 155-181.
    16. Joseph Lampel & Jamal Shamsie, 2003. "Capabilities in Motion: New Organizational Forms and the Reshaping of the Hollywood Movie Industry," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 2189-2210, December.
    17. Agrawal, Ajay & Cockburn, Iain, 2003. "The anchor tenant hypothesis: exploring the role of large, local, R&D-intensive firms in regional innovation systems," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1227-1253, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfonso Gambardella & Marco S. Giarratana, 2010. "Organizational Attributes and the Distribution of Rewards in a Region: Managerial Firms vs. Knowledge Clusters," Organization Science, INFORMS, vol. 21(2), pages 573-586, April.
    2. Po‐Hsuan Hsu & Hai‐Ping Hui & Hsiao‐Hui Lee & Kevin Tseng, 2022. "Supply chain technology spillover, customer concentration, and product invention," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(2), pages 393-417, April.
    3. Jorge Niosi, 2010. "Building National and Regional Innovation Systems," Books, Edward Elgar Publishing, number 14006.
    4. Bruno Cassiman & Masako Ueda, 2006. "Optimal Project Rejection and New Firm Start-ups," Management Science, INFORMS, vol. 52(2), pages 262-275, February.
    5. Figueroa, Nicolás & Serrano, Carlos J., 2019. "Patent trading flows of small and large firms," Research Policy, Elsevier, vol. 48(7), pages 1601-1616.
    6. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 381-410, Elsevier.
    7. Yang, Hongyan & Steensma, H. Kevin, 2014. "When do firms rely on their knowledge spillover recipients for guidance in exploring unfamiliar knowledge?," Research Policy, Elsevier, vol. 43(9), pages 1496-1507.
    8. Wu, Jianfeng & Shanley, Mark T., 2009. "Knowledge stock, exploration, and innovation: Research on the United States electromedical device industry," Journal of Business Research, Elsevier, vol. 62(4), pages 474-483, April.
    9. Rothaermel, Frank T. & Thursby, Marie, 2007. "The nanotech versus the biotech revolution: Sources of productivity in incumbent firm research," Research Policy, Elsevier, vol. 36(6), pages 832-849, July.
    10. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    11. Chen, Sheng-Syan & Kao, Wei-Chuan & Wang, Yanzhi, 2021. "Tax policy and innovation performance: Evidence from enactment of the alternative simplified credit," Journal of Banking & Finance, Elsevier, vol. 125(C).
    12. Steven Buccola & David Ervin & Hui Yang, 2009. "Research Choice and Finance in University Bioscience," Southern Economic Journal, John Wiley & Sons, vol. 75(4), pages 1238-1255, April.
    13. Li, Keming, 2018. "Innovation externalities and the customer/supplier link," Journal of Banking & Finance, Elsevier, vol. 86(C), pages 101-112.
    14. Ajay K. Agrawal & Iain M. Cockburn & Alberto Galasso & Alexander Oettl, 2012. "Why are Some Regions More Innovative than Others? The Role of Firm Size Diversity," NBER Working Papers 17793, National Bureau of Economic Research, Inc.
    15. Agrawal, Ajay & Cockburn, Iain & Galasso, Alberto & Oettl, Alexander, 2014. "Why are some regions more innovative than others? The role of small firms in the presence of large labs," Journal of Urban Economics, Elsevier, vol. 81(C), pages 149-165.
    16. Plank, Josef & Doblinger, Claudia, 2018. "The firm-level innovation impact of public R&D funding: Evidence from the German renewable energy sector," Energy Policy, Elsevier, vol. 113(C), pages 430-438.
    17. Ashish Arora & Alfonso Gambardella & Laura Magazzini & Fabio Pammolli, 2009. "A Breath of Fresh Air? Firm Type, Scale, Scope, and Selection Effects in Drug Development," Management Science, INFORMS, vol. 55(10), pages 1638-1653, October.
    18. Hasan, Iftekhar & (Stan) Hoi, Chun-Keung & Wu, Qiang & Zhang, Hao, 2020. "Is social capital associated with corporate innovation? Evidence from publicly listed firms in the U.S," Journal of Corporate Finance, Elsevier, vol. 62(C).
    19. Chang, Xin & Fu, Kangkang & Low, Angie & Zhang, Wenrui, 2015. "Non-executive employee stock options and corporate innovation," Journal of Financial Economics, Elsevier, vol. 115(1), pages 168-188.
    20. Anne L.J. Ter Wal, 2013. "Cluster Emergence and Network Evolution: A Longitudinal Analysis of the Inventor Network in Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 651-668, May.

    More about this item

    Keywords

    Chandlerian Firms; Entrepreneurship; Diversification; Technology;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssa:lemwps:2004/12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/labssit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.