The Nanoeconomics of Firm‐Level Decision‐Making and Industry Evolution : Evidence from 200 Years of Paper and Pulp Making
Lamberg, J.-A., & Peltoniemi, M. (2020). The Nanoeconomics of Firm‐Level Decision‐Making and Industry Evolution : Evidence from 200 Years of Paper and Pulp Making. Strategic Management Journal, 41(3), 499-529. https://doi.org/10.1002/smj.3080
Published inStrategic Management Journal
DisciplineBasic or discovery scholarshipStrategia ja yrittäjyysBasic or discovery scholarshipStrategy and Entrepreneurship
© 2019 John Wiley & Sons, Ltd.
Research summary We explore the qualitative differences in entries and exits over time. Using qualitative and quantitative data on 96 firms over 200 years, we study industry evolution from the perspective of individual decision‐making situations. Our historical and statistical analyses reveal the vital role of technology investments in determining firm outcomes, and the technological, institutional and governance dynamics that lead firms to invest or to abstain. Our main theoretical and methodological contribution concerns the importance of the multiplicity of firm‐level rationalities and decisions as fundamentals in theorizing on industry evolution. Managerial summary What determines firm outcomes in terms of acquisition, dissolution and survival? This paper answers this crucial question of strategy and elaborates on the extent to which the outcome is under top management control. Our findings highlight the importance of technology investments and we identify factors that make such investments possible and profitable. Our results emphasize that firms weighing options must assess the economic meaningfulness of generational technology investments which result in narrowing profit margins and intensifying competition. Another insight concerns the management of political risks. Long‐term fluctuations in regulation and foreign trade policy make it hazardous to optimize to the contemporary political regime. Skillful strategists invest in geographical and technological complexity, which in combination increase the chances of survival in rapidly changing political regimes. ...
PublisherJohn Wiley & Sons Ltd.
Publication in research information system
MetadataShow full item record
- Kauppakorkeakoulu 
Showing items with similar title or keywords.
Nykänen, Panu (Springer, 2018)This chapter describes the general history of research and development work in the Finnish pulp and paper industry from the mid-nineteenth century until roughly 1990, a period that witnessed it undergo drastic changes ...
Weinmann, Cecilia (2017)Companies are currently facing a technological change that has the potential of disrupt- ing entire industries. Recognizing opportunities provided by Industry 4.0 requires com- panies to apply vision and foresight and to ...
Pehkonen, Jaakko; Neuvonen, Tapani; Ojala, Jari (Routledge, 2019)This study examines the impact of the steam engine, which produced wide and long-lasting economic growth from the 19th century to the early 20th century, on the wages of high-skilled seamen in the Swedish merchant maritime ...
Technological change and the labor market : evidence on the impact of the steam engine in late-19th century merchant maritime shipping industry Neuvonen, Tapani (2018)The rise in wage inequality in the late-20th century has been widely linked to technological progress and the non-monotonic effect it has on workers of dif-ferent skill levels. Much of the work has been done in the context ...
An industry under transformation : the case of the Finnish banking sectors response to financial technology Riihiaho, Matias (2019)Pankit maailmanlaajuisesti ovat ulkoisten muutosajureiden aiheuttamassa murroksessa. Käsite finanssiteknologia (FinTech) on yleisesti ymmärretty sisältävän nämä muutosajurit, vaikka käsite on edelleen heikosti ymmärretty. ...