Abstract
During technological change, to enhance the likelihood of product- market survival, firms must reconcile the tension between a legacy technology orientation – ‘a firm’s relative emphasis on technological knowledge and products aligned to an incumbent technology’ and new technology adoption. Resource reconfiguration through corporate scope decisions and their structural arrangement choices reconciles this tension. A legacy technology orientation exerts inertia through a legacy reinforcement effect – decreasing the likelihood of new technology acquisitions and legacy technology divestitures. New technology alliances mitigate inertia through a legacy attenuation effect - increasing the likelihood of acquisitions/divestitures. We find that in the event of acquisitions/divestitures, firms choosing hybrid structural arrangements involving the joint deployment of legacy and new technology resources benefited from a legacy reconciliation effect and were more likely to survive.
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