Resistance to Change

16 Pages Posted: 21 Nov 2013

See all articles by James Dow

James Dow

London Business School - Institute of Finance and Accounting

Enrico C. Perotti

University of Amsterdam - Finance Group; Centre for Economic Policy Research (CEPR); Tinbergen Institute

Multiple version iconThere are 2 versions of this paper

Date Written: November 19, 2013

Abstract

Established …firms often fail to maintain leadership following disrup tive 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.

Keywords: Change

JEL Classification: D02, D23, L25

Suggested Citation

Dow, James and Perotti, Enrico C., Resistance to Change (November 19, 2013). Available at SSRN: https://ssrn.com/abstract=2356936 or http://dx.doi.org/10.2139/ssrn.2356936

James Dow (Contact Author)

London Business School - Institute of Finance and Accounting ( email )

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+44 20 7262 5050 (Phone)
+44 20 7724 3317 (Fax)

Enrico C. Perotti

University of Amsterdam - Finance Group ( email )

Plantage Muidergracht 12
Amsterdam, 1018 TV
Netherlands
+31 20 525 4159 (Phone)
+31 20 525 5285 (Fax)

HOME PAGE: http://www.fee.uva.nl/fm/people/pero.htm

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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