Scale and Scope Economies in the British Motorcycle Industry, 1899-1993

Filippo C. Wezel, Arjen van Witteloostuijn

Research output: Chapter in Book / Report / Conference proceedingChapterAcademicpeer-review

Abstract

This paper extends organizational ecology by making an attempt to disentangle the consequences of scale and scope economies for organizational survival under different product market configurations. We test our hypotheses by analyzing the mortality rates of 643 UK motorcycle producers during the 1899-1993 period. The findings obtained offer two specific contributions. First, by separating the performance impact of scale from scope economies we clarify the complex mechanisms behind the survival consequences of different organizational strategies. Second, we show how the intensity of both scale and scope forces is relative to the aggregate market-level product configuration. The implications of these findings for organizational ecology and strategic management, and their cross-fertilization, are further discussed.

Original languageEnglish
Title of host publicationEcology and Strategy
EditorsJoel Baum, Stanislav Dobrev, Arjen Witteloostuijn
Pages523-548
Number of pages26
DOIs
Publication statusPublished - 12 Jul 2006
Externally publishedYes

Publication series

NameAdvances in Strategic Management
Volume23
ISSN (Print)0742-3322

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