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Survival-Enhancing Learning in the Manhattan Hotel Industry, 1898--1980

Author

Listed:
  • Joel A. C. Baum

    (University of Toronto, Joseph L. Rotman School of Management, 105 St. George Street, Toronto, Ontario, Canada, M5S 3E6)

  • Paul Ingram

    (Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213-3890)

Abstract

In this study, we examine how experience at the level of the organization, the population, and the related group affects the failure of Manhattan hotels. We find organizational experience has a U-shaped effect on failure; that organizations enjoy reduced failure as a function of population experience before their founding, but not after; and that related organizations provide experience that lowers failure, but it matters whether their experience is local or non-local, and if it was acquired before or after the relationship was established. These results indicate both the difficulty of applying different types of experience to reduce the risk of organizational failure, and the relevance of experience for the evolution of organizational populations.

Suggested Citation

  • Joel A. C. Baum & Paul Ingram, 1998. "Survival-Enhancing Learning in the Manhattan Hotel Industry, 1898--1980," Management Science, INFORMS, vol. 44(7), pages 996-1016, July.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:7:p:996-1016
    DOI: 10.1287/mnsc.44.7.996
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    References listed on IDEAS

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