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Recruitment-based competition between industries: a community ecology

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  • Jesper B. S¯rensen

Abstract

Because entrepreneurs often must recruit labor in order to launch their ventures, the labor market is a potential source of constraint in the entrepreneurial process. Moreover, competition in the labor market likely does not end at the boundaries of the product market, as industries overlap in their needs for labor. I use an organizational ecology framework to examine how founding rates in an industry vary with the degree of competition with other industries for labor, and thereby provides evidence of recruitment-based competition between industries in a community ecology. The extent of recruitment-based overlap between industries is inferred from data on flows of employees within and between industries. Analyses of founding rates in eighty-four industries in Denmark over the period 1980--1991 suggest that new firms are less likely to appear in industries that occupy crowded regions of the labor market. Copyright 2004, Oxford University Press.

Suggested Citation

  • Jesper B. S¯rensen, 2004. "Recruitment-based competition between industries: a community ecology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(1), pages 149-170, February.
    • Handle: RePEc:oup:indcch:v:13:y:2004:i:1:p:149-170
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    Cited by:

    1. Ricardo Mamede, 2009. "Toward an integrated approach to industry dynamics and labor mobility," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(1), pages 139-163, February.
    2. Lars Frederiksen & Silvia Rita Sedita, 2005. "Embodied Knowledge Transfer Comparing inter-firm labor mobility in the music industry and manufacturing industries," DRUID Working Papers 05-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Ulrich Witt & Christian Zellner, 2009. "How firm organizations adapt to secure a sustained knowledge transfer," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(7), pages 647-661.

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