ABSTRACT
How do environmentally-driven and firm-specific factors influence business innovation and adaptation? How can the analysis of their co-evolutionary relationship help explain firm survival or failure over time? To address these key questions, this article focuses on the study regarding the 20-year performance (1997–2017) of the Fiat (later Fiat Chrysler Automobiles) group in the automobile industry. The analysis primarily deals with three historical phases: crisis (1997–2002), turnaround (2003–2007), and expansion (2008–2017). As a key contribution, the study combines elaborations from a robust dataset comprising both industry characteristics and executive team features, with historical events both at the environmental and the firm’s strategy levels. Results suggest that when executive team diversity and a wide breadth of product portfolio are concurrently present, they positively affect corporate performance.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 In January 2021, FCA then merge with PSA to form Stellantis.
2 This juxtaposition also reflects the long-standing dualism perspective, in social sciences, regarding agency and structure, or micro and macro (Fuchs Citation2001). Dualism implies conceptually considering these pairs as opposite, independent, and divided natural kinds. Duality, instead, implies considering these pairs as interdependent, not mutually exclusive extremes of the same continuum (Farjoun Citation2010).
3 Also, observing North America since 2010 was important to our analysis. In fact, in the years 2010–2017, this region gradually becomes Fiat’s main source of automobile revenue. As Section 4.3 explains, this shift happens because of Fiat’s alliance with, then acquisition of, Chrysler.
4 Conversely, we did not consider the persons responsible for Ferrari and Maserati, although these brands are world-class. The reason was twofold: from 1997–2017, (i) Ferrari and Maserati are always formally separated, at group level, from Fiat Automobiles (Ferrari exits the group in 2016); and (ii) if compared to Fiat Automobiles (about 80%), the impact of these brands on the group performance is limited (about 2–3%).
5 As in Dobrev et al.’s (Citation2002) study, the use of the midpoint aims to represent an average positioning.
6 Calculated as the group’s R&D expenditure from its revenues.
7 The CEO of Fiat’s ‘rebirth’ (The Economist Citation2008), Marchionne is largely recognized for having determined the main trajectories of the group’s evolutionary process in the new millennium (e.g. Ebhardt Citation2019). He suddenly passes away in June 2018 and this is also why, in this study, we have methodologically opted to consider 2017 as the final year for our analysis.
Additional information
Notes on contributors
Gianpaolo Abatecola
Gianpaolo Abatecola is a Full Professor of Management at the Tor Vergata University of Rome, School of Economics, Department of Management and Law. His main research interests lie in the fields of co-evolution, managerial decision making, and behavioural strategy. Gianpaolo is currently a co-chair of the standing track about Organizational Ecosystems and Co-Evolution in the EURAM SIG of Research Methods and Research Practice.
Matteo Cristofaro
Matteo Cristofaro is an Assistant Professor of Management at the Tor Vergata University of Rome, School of Economics, Department of Management and Law. His main research interests and publications lie in the fields of managerial decision making, co-evolution, and behavioural strategy. Matteo is currently a co-chair of the standing track about Organizational Ecosystems and Co-Evolution in the EURAM SIG of Research Methods and Research Practice. He is also an executive (2023-2027) of the Management History Division at AOM.
Federico Giannetti
Federico Giannetti is a Doctor of Philosophy in Management at the Tor Vergata University of Rome, School of Economics, Department of Management and Law. His main research interests and publications lie in the fields of evolutionary entrepreneurship.