IMO MORSe Seminar: Archita Sarmah (ESSEC)
Institute of Management and Organisation
Date: 14 March 2018 / 12:30 - 14:00
PC04
We will be welcoming Archita Sarmah from ESSEC on the 14th of March from 12:30-14:00 in PC-04
Title: Permanent Exit or Temporary Break? Organizational Experience and Reentry into a Market after Initial Exit
Abstract: This study examines the firm decision to reenter a previously exited market. Using a sample of 100 biopharmaceutical firms over a 15-year period, this paper investigates the role of a firm’s focal market pre-exit experience on its strategic decision to reenter it after initially exiting it. Empirical results indicate that firms with relatively higher levels of failure experience in the exited market are less likely to reenter it later. However, greater amount of big failure experience of the firm as well as cumulative failure experience of other firms in the exited market increases the likelihood of firm reentry after exit. Certain types of organizational experiences- direct and indirect, in the exited market thus facilitate firm reentry into the market by attracting organizational attention and providing better learning opportunities. This paper contributes to the literature on organizational learning from failure as well as market entry.
