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

10 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 1

Fingerprint

Resources
Internet firms
Asymmetric dependence
World Wide Web
Market failure
Web traffic
Industry

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

Cite this

@article{676e836fdd7d4c6db2126a6b82e26004,
title = "When is dependence on other organizations burdensome? the effect of asymmetric dependence on internet firm failure",
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.",
author = "Lee, {Seung Hyun} and Mun, {Hee Jin} and Park, {Kyung Min}",
year = "2015",
month = "12",
day = "1",
doi = "10.1002/smj.2330",
language = "English",
volume = "36",
pages = "2058--2074",
journal = "Strategic Management Journal",
issn = "0143-2095",
publisher = "John Wiley and Sons Ltd",
number = "13",

}

When is dependence on other organizations burdensome? the effect of asymmetric dependence on internet firm failure. / Lee, Seung Hyun; Mun, Hee Jin; Park, Kyung Min.

In: Strategic Management Journal, Vol. 36, No. 13, 01.12.2015, p. 2058-2074.

Research output: Contribution to journalArticle

TY - JOUR

T1 - When is dependence on other organizations burdensome? the effect of asymmetric dependence on internet firm failure

AU - Lee, Seung Hyun

AU - Mun, Hee Jin

AU - Park, Kyung Min

PY - 2015/12/1

Y1 - 2015/12/1

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=84945484627&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84945484627&partnerID=8YFLogxK

U2 - 10.1002/smj.2330

DO - 10.1002/smj.2330

M3 - Article

AN - SCOPUS:84945484627

VL - 36

SP - 2058

EP - 2074

JO - Strategic Management Journal

JF - Strategic Management Journal

SN - 0143-2095

IS - 13

ER -