Strategic Capital Investment in a Highly Cyclical Industry:An Empirical Study
In this paper we explore an entrepreneurial strategy which has not been thoroughly examined in the literature, that is, the counter-cyclical investment strategy. Cyclical dynamics in the economy, especially those at industry level, arguably constitute a profound setting in which firms are forced to strategize. In particular, industry cycle downturns create opportunities for challengers to enter the market and for incumbents to gain a superior position over their competitors. Based on a rigorous procedure established in our previous work, we have been able to identify the industry cycle in the global semiconductor industry and to examine the performance implication of two distinct investment patterns of firms in the industry from the perspective of industrial cyclical dynamics, that is, counter-versus pro-cyclical investments. We found that the firms committing to the countercyclical investment strategy during the industry cycle downturns were well paid off in the subsequent period.
Industry cycle Business cycle Industrial dynamics pro-cyclical investment Counter-cyclical investment
Hao TAN John A.Mathews
Macquarie University,Australia
国际会议
Academy of Innovation and Entrepreneurship 2008(创新与创业国际学术会议)
北京
英文
492-497
2008-03-01（万方平台首次上网日期，不代表论文的发表时间）