Resistance to Change

James Dow and Enrico Perotti

No 60752, Institutions and Markets Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: Established firms often fail to maintain leadership following disruptive market shifts. We argue that such firms are more prone to internal resistance. A radical adjustment of assets affects the distribution of employee rents, creating winners and losers. Losers resist large changes when strong customer goodwill cushions the consequences. Partial adaptation may lead winners to depart to form new firms with no goodwill, but no internal resistance.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 19
Date: 2010-04
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/60752/files/NDL2010-048.pdf (application/pdf)

Related works:
Working Paper: Resistance to Change (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:feemim:60752

DOI: 10.22004/ag.econ.60752

Access Statistics for this paper

More papers in Institutions and Markets Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().