Rory M. McDonald
Assistant Professor of Business Administration
Rory McDonald is an Assistant Professor of Business Administration in the Technology and Operations Management Unit. He teaches the Technology and Operations Management course in the MBA required curriculum.
Professor McDonald’s research focuses on how firms innovate effectively in new technology-enabled markets. Drawing on in-depth fieldwork and archival data, he studies how executives develop viable strategies in these contexts and how they obtain resources that improve their chances of success. For his research on Internet companies, Rory received a Kauffman Foundation Fellowship in Entrepreneurship and was a finalist for best dissertation in Business Policy and Strategy by the Academy of Management.
Professor McDonald received his PhD in Management Science and Engineering from the Stanford Technology Ventures Program. He also holds an MBA and an MA in economic sociology from Stanford as well as two engineering degrees from the University of South Florida. Before joining Harvard, he was on the faculty of the University of Texas at Austin where he received the CBA Foundation Teaching award. Rory is on the board of YCG Funds, an Austin-based mutual fund company, and is an advisor to several startups.
Rory and his wife Anne live in Sudbury, MA with their four children. They are active in their church and enjoy a variety of family activities.
Life in the Fast Lane: Origins of Competitive Interaction in New vs. Established Markets
Prior work examines competitive moves in relatively stable markets. In contrast, we focus on less stable markets where competitive advantages are temporary and R&D moves are essential. Using evolutionary search theory and an experiential simulation with in-depth fieldwork, we find that the relationship between performance and subsequent competitive moves depends on the type of market, not just on whether performance is high or low. High performers seek to maintain status quo, but this requires different strategies in different markets. They are conservative in established markets and bold in new ones. In contrast, low performers seek to disrupt the status quo. Again, this requires different strategies in different markets. Unlike high performers, low performers are bold in established markets and conservative in new ones where they lack understanding of how to disrupt rivals. Overall, our results incorporate unstable markets in theories of competitive dynamics and competitive interaction in theories of evolutionary search. By examining R&D moves, we also extend competitive dynamics research to include technology-based firms for whom temporary advantages are often essential.
Keywords: Balance and Stability;
Supply and Industry;