BUS 374 Lecture Notes - Lecture 8: Loose Coupling

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Marina Puricelli

Document Summary

Difficult to reorganize & reverse it at will. H1: firms prefer dormancy when they have proximity to gov head quarters. H2: firms prefer dormancy when they have greater exposure to political pluralism. H3: firms don"t prefer dormancy if they are relatively fitter to the new policy. H4: slack has a j-shaped relationship w/ dormancy. H5: greater the extent of dormancy during the detrimental period, more the performance during the favourable period that follows. Compliance to new policy/change requires adaptation & experimentation. Red queen competition = must run to keep in the same place. Many firms cannot sustain red queen competition, other firms will get far ahead. Sometimes, firms that get so ahead then will relax & be counterproductive. Red king competition: don"t grow big, remain dormant so that firm does not bear negative consequences of enviro. In order to move forward, must run twice as fast. Temp reduction in org"s activity following onset of detrimental public policy.