Why are Firms Different? Why Successful Firms Differ?
Stefka Nenkova, Student (University), Netherlands, Premium Member
It is an obvious fact that firms differ. However, according to Carroll (1993) it is important to distinguish between the questions why firms differ from why successful firms differ from a sociological point of view.
Based on different theories and empirical research he summarizes the following sources that cause firms to deviate from the equilibrium state, i.e. the “temporal equilibrium of the competitive system within which organizations operate and compete” or, in other words, characteristics, which make a firm different (Carroll, G. R., 1993).
WHY FIRMS DIFFER
- DISPOSITIONAL INDIVIDUAL SOURCES: the entrepreneur is considered a social embodiment of the firm itself, meaning that depending on his entrepreneurial personality organizations differ on structural level and stages of development.
- SITUATIONAL INDIVIDUAL SOURCES: this source considers the situational factors that drive the entrepreneur’s decision to become self-empl...