Environmental conditions at founding and organizational mortality: a trial-by-fire model

Article Abstract:

Unobserved heterogeneity in organizational frailty and population-level learning suggest a particular relationship between environmental conditions at founding and organizational mortality. Organizations founded in adverse environments experience higher initial mortality rates. However, beyond a certain age, survivors among such organizations have mortality rates that are lower than those of organizations founded in less adverse environments. These predictions are supported in analyses of the effects of population density and competitive intensity at founding on the mortality rate of U.S. brewery and Argentine newspaper organizations. (Reprinted by permission of the publisher.)

Organizational effectiveness, New business enterprises, Startups, Business failures

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Differentiation within an organizational population: additional evidence from the wine industry

Article Abstract:

In this study of California wineries observed between 1940 and 1984, we showed that organizations within a population may escape competitive pressures through differentiation. Both wineries founded in the table wine niche and those that diversified into it were subject to lower failure rates than other wineries. This study also demonstrated how it is possible to compensate for a lack of strictly appropriate data, a characteristic of ecological studies. (Reprinted by permission of the publisher.)

Business enterprises, Diversification in industry, Industrial diversification

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Resource Partitioning and the Evolution of Specialist Organizations: The Role of Location and Identity in the U.S. Wine Industry

Article Abstract:

Specialists thrive in the periphery when generalists (companies) in a mature industry vigorously compete for the center of the market. However, the performance of farm wineries of the U.S. suffer when they deviate from identity characteristics, i.e., smallness and reputation for high quality tied to vineyard ownership.

United States, Wineries, Wine, Statistical Data Included, Analysis, Management, Competition (Economics), Marketing

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