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Spatial and Temporal Heterogeneity in Founding Patterns

Author

Listed:
  • Gino Cattani

    (Department of Management, Wharton School, University of Pennsylvania, Locust Walk, 2000 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104)

  • Johannes M. Pennings

    (Department of Management, Wharton School, University of Pennsylvania, Locust Walk, 2000 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104, and Faculty of Economics, Tilburg University, P.O. Box 90153, 5000 LE, Tilburg, The Netherlands)

  • Filippo Carlo Wezel

    (Department of Organization and Strategy, Tilburg University, P.O. Box 90153, 5000 LE, Tilburg, The Netherlands)

Abstract

A growing body of literature suggests that populations of organizations are not homogeneous, but instead comprise distinct subentities. Firms are highly dependent on their immediate institutional and competitive environments. The present paper further explores this issue by focusing on the spatial and temporal sources of industry heterogeneity. Our goal is threefold. First, we explore founding rates as a function of spatial density, arguing that density-dependent processes occur along a geographic gradient ranging from proximate, to neighboring, to more distant contexts. Second, we show how multiple, local evolutionary clocks shape such entrepreneurial activity. Third, we provide evidence on how diffusion processes are directly affected by social contagion, with new organizational forms spreading through movements of individuals. Results from data on the Dutch accounting industry corroborate these patterns of heterogeneity.

Suggested Citation

  • Gino Cattani & Johannes M. Pennings & Filippo Carlo Wezel, 2003. "Spatial and Temporal Heterogeneity in Founding Patterns," Organization Science, INFORMS, vol. 14(6), pages 670-685, December.
    • Handle: RePEc:inm:ororsc:v:14:y:2003:i:6:p:670-685
    DOI: 10.1287/orsc.14.6.640.24874
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    References listed on IDEAS

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    Cited by:

    1. Erik Stam, 2010. "Entrepreneurship, Evolution and Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 6, Edward Elgar Publishing.
    2. Filippo Carlo Wezel & Gino Cattani & Johannes M. Pennings, 2006. "Competitive Implications of Interfirm Mobility," Organization Science, INFORMS, vol. 17(6), pages 691-709, December.
    3. Özgecan Koçak & Serden Özcan, 2013. "How Does Rivals' Presence Affect Firms' Decision to Enter New Markets? Economic and Sociological Explanations," Management Science, INFORMS, vol. 59(11), pages 2586-2603, November.
    4. Andrea Morrison & Ron Boschma, 2019. "The spatial evolution of the Italian motorcycle industry (1893–1993): Klepper’s heritage theory revisited," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 613-634.
    5. Y. Sekou Bermiss & Benjamin L. Hallen & Rory McDonald & Emily C. Pahnke, 2017. "Entrepreneurial beacons: The Yale endowment, run‐ups, and the growth of venture capital," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 545-565, March.
    6. Erik Stam & Jan Lambooy, 2012. "Entrepreneurship, Knowledge, Space, and Place: Evolutionary Economic Geography meets Austrian Economics," Advances in Austrian Economics, in: The Spatial Market Process, pages 81-103, Emerald Group Publishing Limited.
    7. Bogaert, Sandy & Boone, Christophe & Carroll, Glenn R., 2006. "Contentious Legitimacy: Professional Association and Density Dependence in the Dutch Audit Industry 1884-1939," Research Papers 1944, Stanford University, Graduate School of Business.
    8. Sven Müller, 2012. "Identifying spatial nonstationarity in German regional firm start-up data," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 113-132, September.
    9. Jill A. Brown & Peter T. Gianiodis & Michael D. Santoro, 2015. "Following Doctors’ Orders: Organizational Change as a Response to Human Capital Bargaining Power," Organization Science, INFORMS, vol. 26(5), pages 1284-1300, October.
    10. Johannes M. Pennings & Filippo Carlo Wezel, 2010. "Faraway, Yet So Close: Organizations in Demographic Flux," Organization Science, INFORMS, vol. 21(2), pages 451-468, April.
    11. Alessandro Lomi & Erik R. Larsen & Filippo Carlo Wezel, 2010. "Getting There: Exploring the Role of Expectations and Preproduction Delays in Processes of Organizational Founding," Organization Science, INFORMS, vol. 21(1), pages 132-149, February.
    12. Koen Frenken & Elena Cefis & Erik Stam, 2020. "Industrial Dynamics and Clusters: A Survey," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 10-27, July.
    13. Bird, Miriam & Wennberg, Karl, 2014. "Regional influences on the prevalence of family versus non-family start-ups," Journal of Business Venturing, Elsevier, vol. 29(3), pages 421-436.
    14. Çakmaklı, Anıl Divarcı & Boone, Christophe & van Witteloostuijn, Arjen, 2020. "Identity realization, multiple logics and legitimacy: Organizational foundings during the emergence of the Dutch accounting industry," Accounting, Organizations and Society, Elsevier, vol. 83(C).
    15. Hellerstedt, Karin & Wennberg, Karl & Frederiksen, Lars, 2014. "University Knowledge Spillovers & Regional Start-up Rates: Supply and Demand Side Factors," Ratio Working Papers 230, The Ratio Institute.
    16. DIVARCI, Anil & BOONE, Christophe & VAN WITTELOOSTUIJN, Arjen, 2012. "When does globalization lead to local adaptation? The emergence of hybrid Islamic schools in Turkey, 1985-2007," Working Papers 2012022, University of Antwerp, Faculty of Business and Economics.
    17. DIVARCI, Anil & BOONE, Christophe & VAN WITTELOOSTUIJN, Arjen, 2012. "When does globalization lead to local adaptation? The emergence of hybrid Islamic schools in Turkey, 1985-2007," ACED Working Papers 2013015, University of Antwerp, Faculty of Business and Economics.
    18. Jing Su & Qinghua Zhai & Tomas Karlsson, 2017. "Beyond Red Tape and Fools: Institutional Theory in Entrepreneurship Research, 1992–2014," Entrepreneurship Theory and Practice, , vol. 41(4), pages 505-531, July.
    19. Eapen, A., 2007. "Essays on international market entry : Strategic alliance governance and product segment entry," Other publications TiSEM a234be6d-ae99-4be2-9365-2, Tilburg University, School of Economics and Management.

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