Search and selection in the money market fund industry
Article Abstract:
A generic dynamic growth system for money market fund families is developed to measure organization search and test if it minimizes failure risk. This growth system incorporates specific cost and demand characteristics that affect firm expansion. The condition of the growth system in each time period for a specific firm, as estimated by the Kalman filter, indicates the state of the search process of the firm. Findings demonstrate no supporting evidence that the continually revised coefficients have an impact on the risk of failure. Nevertheless, the cumulative amount of search positively influences exit, in consonant with the structural inertia theory of Hannah and Freeman (1984). Other significant predictors of money market fund failure are founding conditions and money market fund performance.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Can first-mover and early-mover advantages be sustained in an industry with low barriers to entry/imitation?
Article Abstract:
A study was conducted to ascertain if first-mover and early-mover advantages can be maintained in an industry with low barriers to entry and easily copied new product innovations. This study differs from prior research because it focuses on a single industry, in this case the money market mutual fund business, and hones in a specific source of competitive advantage, the timing of market entry. Findings revealed that first-movers and early-movers benefit from a highly sustainable pricing advantage and a moderately sustainable market share advantage. These results seem to contradict the generalizations made by the supporters of the hypercompetitive paradigm, which posits that competition is increasing in all industries where advantages are no longer sustainable.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Identifying a Distinctive Competence: Forecasting Ability in the Money Fund Industry
Article Abstract:
The ability of money market mutual funds to forecast changes in short-term interest rates is examined. The effect of such abilities on the economic surplus generated by a specific fund and its growth is tested.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 2000
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Reaching the minority markets. Incentive industry needs to prove its worth. Managing a multifaceted motivational campaign
- Abstracts: Breakfast cereals: the extreme food industry. Consumers still in a box: the high price of breakfast cereal. Consumers in a box: a consumer report on cereal
- Abstracts: Similarities and contradictions in the core logic of three strategy research streams. Strategy research: governance and competence perspectives
- Abstracts: Eye on the web: e-mail bulletins. Confidence in Taxcalc site crumbles. Coming to terms with net speak
- Abstracts: Branding campaign expands Star-Telegram's reader market. Campaign promotes columnists, pushes next-day readership