Measuring firm strategic change in the regulated and deregulated motor carrier industry: An eighteen-year evaluation

The evolution of the business strategy of firms and an assessment of how firms in the motor carrier industry change over time in response to changes in their external and internal environments is of significance to the fields of strategy and transportation. From a strategic point of view, a longitudinal, firm level investigation of strategic changes provides a unique understanding of what forces impel firms to alter their strategic focus over time and the ramifications of the decision to change or not to change.; This dissertation has four objectives: (1) to assess firm strategic change on an individual firm level, (2) to assess those changes over an eighteen year time period, (3) to investigate the external and internal forces that influence a firm to change or not change its strategic focus over time, and (4) to evaluate the performance implications of a firm's decision to alter its strategic focus over time.; The theoretical basis for the dissertation draws from strategic management, industrial organization economics and strategic change literature. Based on Child's (1972) theory of strategic choice, firm strategy and strategic changes are outcomes of managers' deliberate choices regarding resource allocations in response to changes in a firm's external and internal environment.; The eighteen year longitudinal data base of 615 firms is analyzed to answer the four research questions and nine hypotheses. Ordinary least squares regression is used to answer the nine hypotheses corresponding to the four research questions.; The main results are as follows. Data collected in this study provides evidence that firms change in response to strong changes, such as recessions and falling fuel prices, in their external environment. Firms also exhibit high levels of strategic change when faced with industry-wide legislative changes. Internally, those firms with previous poor performance levels were found to exhibit higher levels of strategic change than those firms evidencing previous positive performance levels. In addition, those firms where CEO turnover is succession by a family member, firms exhibiting positive performance levels, and older firms were found to have a slower pace of strategic change than other firms. Results having significant management implications are discussed.