In hypercompetitive environments, the established paradigms of sustainability of competitive advantage and stability of organizational form may have limited applicability. Using an in-depth case analysis of the firms Yahoo! and Excite, this study examines how the organizational form, function, and competitive advantage of these firms dynamically coevolved. The study introduces the concept of continuous morphing to describe the comprehensive ongoing transformation through which the focal firms sought to regenerate their transient competitive advantage on the Internet.
We appreciate helpful comments and suggestions provided by Tom Lee, David Lepak, Luis Martins, Ken Smith, Kevin Steensma, and the participants at the GITI Gonference “Investment in the New Media,” December 1999, Columbia University, New York. We acknowledge the help of Gina Johnson with preparation of some of the tables and figures and the editorial assistance of Gabrielle Gerhard. We also thank John Ghild and three anonymous reviewers for their comments and suggestions. Special thanks to Jerry Yang of Yahoo! for responding to our questions.
Soource: © Academy of Management Journal