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The dynamics of rapid industrial growth: evidence from Sweden's information technology industry, 1990--2004

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  • Olof Zaring
  • C. Magnus Eriksson

Abstract

Sweden's information technology (IT) industry expanded through an inflow of new entrants during the 1990s. Its evolution was analyzed using ecological models of organizational founding and disbanding. Controlling for the effects of economic conditions, this study analyzed the effects of density dependence, age, imprinting, rate dependence, and the origin of new entrants on the industry. The results indicate that the inflow was comprised of start-ups that proved to be relatively short-lived. In contrast, new entrants that originated as part of incumbent firms that were diversifying in IT stabilized the industry by depressing its disbanding rate and facilitating the entry of new firms. In explaining the dynamics of the industry, the analysis supports the established models of density dependence, age dependence, imprinting, and organizational origin. Copyright 2009 The Author 2009. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Olof Zaring & C. Magnus Eriksson, 2009. "The dynamics of rapid industrial growth: evidence from Sweden's information technology industry, 1990--2004," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(3), pages 507-528, June.
    • Handle: RePEc:oup:indcch:v:18:y:2009:i:3:p:507-528
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    File URL: http://hdl.handle.net/10.1093/icc/dtp010
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