Relationship between Organizational Change and Failure in the Wine Industry: An Event History Analysis

Abstract

Whether organizational change is adaptive or disruptive has been an issue among organization researchers. This paper examines the effect of organizational change on organizational failure and compares the result to previous findings. To increase comparability, we replicated Delacroix and Swaminathan’s (1991) format of the California wine industry study using Missouri wine industry data. Event history analysis is used to cover time‐varying variables and censoring problems. Following an organizational ecology perspective, our result supports the finding that organizational change is not related to organizational failure