When is dependence on other organizations burdensome? the effect of asymmetric dependence on internet firm failure

Seung Hyun Lee, Hee Jin Mun, Kyung Min Park

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Although critical resource providers offer ample access benefits to deficient firms, dependence on these resource providers is burdensome because dependency places deficient firms into a vulnerable position, especially when the dependency is asymmetric. Thus, we ask: Is it better to balance dependence among critical resource providers or asymmetrically depend on one if there is more than one resource provider? We use a unique context of the internet industry where satellite internet firms depend on portals that provide Web traffic and find that asymmetric dependence on portals increases the likelihood of failure, but market leaders suffer less from asymmetric dependence, while satellite internet firms with higher dependence on portals suffer more from asymmetric dependence.

Original languageEnglish
Pages (from-to)2058-2074
Number of pages17
JournalStrategic Management Journal
Volume36
Issue number13
DOIs
Publication statusPublished - 2015 Dec

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

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