Externalities and Ecological Theory: Unbundling Density Dependence

Jacques Delacroix · Hayagreeva Rao

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Management and Organizational Studies Economic Theory and Institutions Management Theory and Practice

Abstract

Abstract The ecological-evolutionary perspective asks how the organizational panorama changes over time and why there are so many different kinds of organizations. The general answer it provides is that organizations disband and are rapidly replaced by new ones somewhat different from them, and that environmental discontinuities create new niches wherein new kinds of organizations may arise (Brittain, chapter 17, this volume). This formulation distinguishes carefully between the emergence of a new organizational form, on the one hand, and the founding of instances of an existing organizational form, on the other. Its guiding paradigm is environmental selection, in contrast with the voluntaristic, individual organizational adaptation view prevailing elsewhere in the study of organizations (Hannan and Freeman, 1977; Aldrich, 1979; McKelvey, 1982).

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