Interacting locally and evolving globally: a computational approach to the dynamics of organizational populations

Article Abstract:

We present a computational model of organizational evolution according to which the global dynamics of organizational populations emerge from simple rules of local interaction among individual organizations. Under a variety of simulated evolutionary conditions, the model's behavior is in qualitative agreement with empirical observations of actual organizational populations. Estimates on the synthetic data are compared with those obtained by empirical studies of founding processes. The key insight is that the density-dependence theory is consistent with many microprocesses that regulate the birth, survival, and death of individual organizations. However, the population-level relationship between density and organizational vital rates is highly sensitive to the range and rules of local interaction among individual organizations. (Reprinted by permission of the publisher.)

Population density, Interorganizational relations

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Organizational strategy: an ecological perspective

Article Abstract:

This study demonstrates the application of theories and models from organizational ecology to the study of organizational strategy. Competition between strategic groups and the effects of environmental characteristics are estimated for an 18-year period in the U.S. brewing industry. Results indicate both competitive and symbiotic relationships exist between strategic groups and that environmental characteristics have an important influence on strategic viability. Ecological arguments are developed to explain the role of competition and environment in influencing the expansion and decline of organizations pursuing different strategies. (Reprinted by permission of the publisher.)

Malt beverages, Competition (Economics), Brewing industry, Breweries, Strategic planning (Business), Industrial management

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Hybrid organizational arrangements and their implications for firm growth and survival: a study of new franchisors

Article Abstract:

This study proposes that hybrid organizational forms provide a way to overcome the agency problems of adverse selection and moral hazard in selecting, assimilating, and monitoring new managers. Consequently, hybrid forms allow firms to overcome managerial limits to firm growth and therefore grow faster. Specifically, the study shows empirically that the degree to which a firm emphasizes franchising as its expansion strategy has a significant, positive effect on its growth and survival. (Reprinted by permission of the publisher.)

Innovations, Appointments, resignations and dismissals, Executives, Employee selection, Industrial organization, Franchises, Corporate growth

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