THE FATES OF DE-NOVO AND DE-ALIO PRODUCERS IN THE AMERICAN AUTOMOBILE-INDUSTRY 1885-1981

Do laterally diversifying firms outlast new startups? Or does organiza tional inertia give the advantage to startups? We explore these questi ons here using the experiences of American automobile manufacturers fr om 1885 through 1981. We advance and test an integrative model that al lows the organizational effects of entry mode to vary across the firm' s life cycle. We also compare the life chances of laterally diversifyi ng firms by industry of origin, including especially bicycle, carriage and engine manufacturers. Findings show the potentially integrative v alue of an evolutionary approach to strategy.