But if a company evolved repeatedly, and transformed itself
The issue is still the identity: is it the same company?
massive shocks are easier for large companies to absorb, due to their greater institutional capacity
I think that depends on the kind of shock. Shocks which call mostly for staying power to wait out the storm, yes. But shocks which require rapid adaptation, I have doubts about.
Your chapter 5 is about disaster recovery. It is staying power because your goal is to return to the status quo ex ante. Adaptation is needed when you find yourself in new circumstances which will not go away.
For an example of a company which failed to adapt, see Kodak.
The issue is still the identity: is it the same company?
I think that depends on the kind of shock. Shocks which call mostly for staying power to wait out the storm, yes. But shocks which require rapid adaptation, I have doubts about.
I think the linked piece makes a convincing argument that it’s not just about staying power.
Your chapter 5 is about disaster recovery. It is staying power because your goal is to return to the status quo ex ante. Adaptation is needed when you find yourself in new circumstances which will not go away.
For an example of a company which failed to adapt, see Kodak.
True—I wasn’t referring exclusively to chapter 5 when I said that’s the argument the linked piece makes. And again, it’s not just about staying power.