Abstract
The literature on the interaction between firm and environment lacks a systematic distinction between adaptation and shaping. A clear delineation of shaping can shed a new light on the cause and effect in the co-evolution of firms and their environment. Our study creates an empirical delineation based on the photovoltaic cell industry between 1976 and 2016. Using this delineation, we examine which firms are more likely to shape their business environment. Our analysis shows that the probability of shaping increases with the firm’s intentional design efforts per the vision of the Mendelian executive that amplify knowledge recombination and customer expectations. These efforts, as antecedents of shaping, also predict comparatively the probabilities of shaping, adaptation and exit as responses to the emergence of a dominant design.
Published Version
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