Research and teaching

Markus Reitzig and Olav Sorenson

We propose that the failure to adopt an idea or innovation can arise from an in-group bias among employees within an organizational subunit that leads the subunit’s members to undervalue systematically ideas associated with members of the organization outside their subunit. Such biases in internal selection processes can stymie organizational adaptation and therefore depress the performance of the firm. Analyzing data on innovation proposals inside a large, multinational consumer goods firm, we find that evaluators are biased in favor of ideas submitted by individuals that work in the same division and facility as they do, particularly when they belong to small or high-status subunits.

Strategic Management Journal, 34 (2013): 782-799

Samira Reis, Giacomo Negro, Olav Sorenson, Fabrizio Perretti, and Alessandro Lomi

The theory of resource partitioning proposes that competition among generalists in the center of a market can trigger a process of resource release that engenders a proliferation of specialist producers outside the center. Previous research has generally examined the relationship between this proliferation and market concentration – a correlate of competitive intensity in the center of the market. In this paper, we extend the theory by arguing that resource release also occurs as the degree of competitive overlap among producers in the center intensifies, even when concentration or other structural features do not vary; we expand its implications by demonstrating that increased competitive overlap in the market center should enhance the viability of producers positioned near the center more than those in the periphery; and we enrich and complete it by specifying the additional assumptions needed to extend the theory of resource partitioning to entry processes. Consistent with our expectations, an empirical examination of the Italian broadcast television industry, from 1992 to 2003, finds that the failure rates of both near-center and peripheral organizations decline in response to increasing competitive overlap in the programming of the national broadcasters, with the failure rates of the near-center organizations falling more than those of peripheral organizations. Increasing competitive overlap similarly stimulates the entry of near-center organizations more than peripheral ones.

Industrial and Corporate Change, 22 (2013): 459-487