The organization enacts the environment and the environment feeds back : mortality rates in the UK motorcycle industry, 1895-1993
AbstractThis paper uses the information on 648 manufacturers during the period included between 1895 and 1993 to explore the interaction of different levels of analysis in developing of the United Kingdom motorcycle industry. It provides three general results. First, it demonstrates how long term changes of the organizational environment can be related to the microevolution of firms’ strategies. Second, it sheds light on the fact that organizations and population act in the opposite way in determining the survival of firms. On the one hand, organizations diversify their production in order to obtain economic advantages of scale and superior profits. On the other, the evolution of the population constrains organizational expansion by increasing the level of competition. These two contrasting forces drive the coevolution of niches of generalist and specialist producers within the population. Third, while the increasing age of a population’s members tend to reduce the level of competition, ages’ heterogeneity represents a powerful selective force acting within an organizational population. The implications stemming from this work are related to both the literatures of business strategy and of population ecology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 02G41.
Date of creation: 2002
Date of revision:
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
- Scott, John T, 1982. "Multimarket Contact and Economic Performance," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 368-75, August.
- James G. March, 1978. "Bounded Rationality, Ambiguity, and the Engineering of Choice," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 587-608, Autumn.
- Saviotti, P P & Mani, G S, 1995. "Competition, Variety and Technological Evolution: A Replicator Dynamics Model," Journal of Evolutionary Economics, Springer, vol. 5(4), pages 369-92, December.
- Gernot Grabher & David Stark, 1997. "Organizing Diversity: Evolutionary Theory, Network Analysis and Postsocialism," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 533-544.
- George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185.
- Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
- Mokyr, Joel, 1994. "Cardwell's Law and the political economy of technological progress," Research Policy, Elsevier, vol. 23(5), pages 561-574, September.
- William E. Cox & Jr., 1967. "Product Life Cycles as Marketing Models," The Journal of Business, University of Chicago Press, vol. 40, pages 375.
- Sunder Kekre & Kannan Srinivasan, 1990. "Broader Product Line: A Necessity to Achieve Success?," Management Science, INFORMS, vol. 36(10), pages 1216-1232, October.
- B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
- Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-98, August.
- Barnett, William P. & McKendrick, David, 2001. "The Organizational Evolution of Global Technological Competition," Research Papers 1682, Stanford University, Graduate School of Business.
- Richard Schmalensee, 1978. "Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 305-327, Autumn.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joke Bulthuis).
If references are entirely missing, you can add them using this form.