Resistance to Change

Established firms often fail to maintain leadership following disruptive market shifts. We argue that such firms are more prone to internal resistance. A radical adjustment of assets affects the distribution of employee rents, creating winners and losers. Losers resist large changes when strong customer goodwill cushions the consequences. Partial adaptation may lead winners to depart to form new firms with no goodwill, but no internal resistance.


Issue Date:
2010-04
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/60752
Total Pages:
19
JEL Codes:
D21
Series Statement:
IM
48.2010




 Record created 2017-04-01, last modified 2017-08-25

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