Session 175

Austrian Economics & Creative Destruction

Track K

Date: Monday, October 8, 2012


Time: 08:00 – 09:15

Common Ground

Room: Club E


  • Peter Klein, Baylor University

Title: Austrian Economics in Organization Studies: How Austrian Ideas Contribute to Strategy, Entrepreneurship, and Related Areas


  • Todd Chiles, University of Missouri-Columbia
  • Sara Soares Traquina Alves Elias, University of Missouri-Columbia
  • Mark Packard, University of Nevada, Reno

Abstract: The field of organization studies has been profoundly influenced by Austrian economics over the years. However, no one has conducted a systematic review of Austrian ideas in organization studies. In this research, we review the last 23 years of organizational literature to examine how Austrian ideas have been used and the theoretical conversations to which these ideas have contributed. We develop a new typology based on the core Austrian concepts of knowledge and change to make sense of the numerous strands of Austrian economics, and we use this typology to structure our review. We employ a mix of quantitative and qualitative content analyses to help us interpret the literature, which is dominated by the strategy and entrepreneurship subfields. We conclude with directions for future research.

Title: Dominant Designs and New Firms


  • Tianxu Chen, Oakland University
  • VK Narayanan, Drexel University

Abstract: How will dominant designs be influenced by firms' competitive strategy and how will competitive dynamics in the dominance battle influence the exit of new firms that compete by creating original designs? To investigate these research questions, we develop a framework linking three factors to a design-based entrepreneur’s likelihood to exit: technological variation in the product class, the emergence of de facto standard(s), and the design-based entrepreneur’s concentration in competitive actions. We find strong empirical support for our theoretical framework based on panel data of 188 design-based entrepreneurial ventures in the period from 1980 through 2006.

Title: Exploring the Effect of Entrepreneurial Autonomy on Managerial Participation in Knowledge Networks


  • Michael Strenge, University of Freiburg
  • Olaf Rank, Albert Ludwigs University of Freiburg

Abstract: Our study builds on the integration of entrepreneurship and social networks research in investigating the conditions that promote or hinder managers to engage in knowledge networks. We present a theoretical model and an empirical analysis of the relationship between entrepreneurial autonomy and knowledge sharing. Drawing on contingency and configurational perspective, we analyze the strength of the relationship in light of possible moderating effects of structural organicity and competitive intensity. Data were gathered from a setting where the importance of entrepreneurship, knowledge, and networks is often claimed but rarely tested – in a cluster of high-technology firms. We empirically test and find support for our model by using social network analysis.

Title: Revisiting Market-Level Competition: The Perspective from Low-Cost Entrants


  • Terence Fan, Singapore Management University

Abstract: In view of the persistently high failure rate of new entrants, this paper proposes a ‘survival-first, profit-second’ market entry strategy for young, de novo low-cost entrants in an industry dominated by higher-cost and higher-quality incumbents. Aimed at minimizing retaliation from incumbents, this strategy advises low-cost entrants to aim at customers not already served by the incumbents, and to adopt Cournot-type behavior when encountering fellow low-cost competitors. Several hypotheses developed from a formal model were tested using data from the intra-European airline industry, and were broadly supported. Contrary to intuition, the presence of many high-quality incumbents significantly reduced the profit for low-cost entrants, as witnessed by the increased the probability of market exit by a focal low-cost entrant.

Title: The Slow Death of Old Media: Examining Social Networking and the Competitive Terrain of News


  • Layla Branicki, University of Birmingham
  • Doreen Agyei, University of Warwick

Abstract: Social media as a phenomenon is changing the ways in which individuals interact online. Its growing prevalence is also having a profound impact on the underlying structure of news, its consumption and the practices of news organizations. By exploring current trends this proposal aims to investigate social media’s influence on the strategy of news corporations. It provides a unique perspective by examining the commercial impacts of social media on suppliers of news and associated to this the potential change from few powerful media players to multiple agents. Primary data is collected from journalists and senior management executives within news media and social media technology companies. The analysis develops five overarching key themes which capture potential influences of social media on news companies in coming years.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 126: Entrepreneurship & Stakeholders - The Future Research Agenda
Sun: 09:30 – 10:45
Session 127: Teaching Strategic Entrepreneurship
Sun: 11:15 – 12:30
Session 128: Poverty, Informal Firms & Strategic Entrepreneurship
Sun: 15:15 – 16:30
Session 157: Financing Entrepreneurial Ventures
Session 161: Entrepreneurial Growth
Mon: 08:00 – 09:15
Session 158: Corporate Venture Capital
Session 175: Austrian Economics & Creative Destruction
Mon: 09:30 – 10:45
Session 178: Institutional Theory & New Ventures
Session 180: Pushing the Bounds of Agency Theory
Mon: 13:30 – 14:45
Session 159: Exploration, Exploitation, and Ambidexterity
Session 169: Spinoffs, Spinouts, and Labor Mobility
Mon: 16:30 – 17:45
Session 162: New Venture Strategy & Innovation
Session 163: Cognitive Perspectives
Tue: 08:00 – 09:15
Session 164: IPOs
Session 170: Emerging Markets
Tue: 11:00 – 12:15
Session 160: Corporate Venturing and Intrapreneurship
Session 179: Social Networks within and across Firms
Tue: 14:15 – 15:30
Session 166: Institutional Aspects of Entrepreneurship
Session 167: Firm Boundaries
Tue: 15:45 – 17:00
Session 174: Social Networks & Entrepreneurship
Session 176: Value Capture & Appropriability
Tue: 17:30 – 18:45
Session 168: Uncertainty, Ambiguity, and Sense-Making
Session 173: New Venture Creation

Strategic Management Society