Skip to main content
alt

Please enter a keyword and click the arrow to search the site

Or explore one of the areas below

Bottleneck resources, market relatedness, and the dynamics of organizational growth

Journal

Organization Science

Subject

Strategy and Entrepreneurship

Publishing details

Organization Science 2022 May-June Vol 33:3 p 1049-1067

Authors / Editors

Chang S;Eggers J P;Keum D

Biographies

Sungyong Chang

Publication Year

2022

Abstract

Entering a new product market requires assembling a bundle of resources. Because missing a single resource can foil the entire entry effort, we argue that bottleneck resources – those most difficult to obtain or sell externally – anchor the direction of firm growth. We characterize market resources as bottlenecks to product-market entry because they are (on average) more challenging to obtain and sell than technological resources, and we articulate why the importance of market resources varies with the strength of external markets for technology. Using cross-industry data linking firms’ product portfolios with patents, we find resource dynamics whereby market resources drive the strategic decision to enter, and firms fill technological gaps using both internal R&D and external acquisitions (joint ventures and alliances). Our study underscores the importance of resources for firm growth dynamics and specifically highlights market resources as the bottleneck that constrains and directs the direction of product market entry.

Keywords

Product market entry; Diversification; Resource-based view; Demand-side strategy; Markets for technology

Available on ECCH

No


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.