Strategy changes and Internet firm survival.

다국어 초록 (Multilingual Abstract)

This research examines the strategic morphing, performance outcomes and survivals of Internet firms. The research focus is on: (1) an explanatory model for Internet firm failures observed to date, and (2) identification of the industry, firm, and e-commerce related factors that are crucial to the survival of an Internet firm.
Three essays describe three related studies. In the first study, the morphing strategies for 125 Internet firms were examined through the lens of evolutionary game theory. Sources of data are published articles in business magazines and newspapers. Results of the analysis suggest five types of Internet firms morphing strategies including change product/service offerings in existing markets, move upstream to new higher-quality customers, adjust pricing model, pursuing offline presence, and other strategies such as leveraging excess capacity and entering an entirely new business.
The second study empirically tests an evolutionary survival model of Internet firm duration using the logit model and nonparametric and semiparametric survival analyses. It takes advantage of the accounting and finance literature on bankruptcy prediction, economics research on business failure, organizational adaptation and change literature, and recent IS literature on the efficacy of different business models. The results are robust across the different methods used based on a sample of 115 publicly traded Internet firms. Internet firms selling digital products or services are more likely to survive than those selling physical goods. A larger number of Internet firm IPOs in the stock market, a larger firm size and a lower ratio of total debt/total assets can also enhance an Internet firm's probability of survival.
In the third study, I extend the model tested in the second study and empirically test an outcome-contingent model on Internet firm bankruptcy , merger, acquisition and survival using the same sample of 115 public Internet firms. The results reveal that the drivers of the different outcomes are different. Factors that can reduce an Internet firm's likelihood of exit from the marketplace include the selling of digital goods, a higher number of Internet firm IPOs in the stock market, a lower total debt/total assets ratio and a larger firm size.