Early entry, capabilities and shakeout in the US brewing industry

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this study is to examine how early-entry and process-based capability development affected firm survival during shakeout in the US brewing industry between 1938 and 1980. Design/methodology/approach -Hazard analysis was conducted on US brewing industry data spanning 42 years from 1938 to 1980. Findings -Both early-entry and later capability developments enhance the probability of survival. In addition, firms which entered early were also more likely to be the firms who continually developed capabilities across the decades. Research limitations/implications -This study contributes to our understanding of shakeout in traditional, non-high-technology businesses. However, because it is a single industry study, the ability to the generalize findings to other industry contexts is limited. Practical implications -Early entry can determine survival in industries with stable products and low levels of technological change. Social implications -Policy-makers interested in competitive dynamics should take note of the historical conditions that lead to industry consolidation in traditional industries, which, while not as glamorous as the technology sector, provide the core of US industry. Originality/value -Historical firm characteristics can impact industry structure and firm survival for over a century.

“Dominance by birthright”? Reconfiguration of firm boundaries to acquire new resources and capabilities

“…The motivations for vertical integration could be explained by resources-driven integration (Eschen and Bresser, 2005) with the intention of avoiding uncertainty as proposed in transaction cost theory (Williamson, 1975). It is also consistent with the findings of a recent study of the US brewing industry (Walter et al , 2016) where firms actively deployed strategic choice (Short and Payne, 2008) to develop the necessary capabilities to avoid being shaken out. Kapoor (2013) has also demonstrated the persistence of semiconductor industry to integrate vertically despite the waves of specialization.…”