G. Le Mens
Founding Condition, Learning and Organizational Life Chances: Age Dependence Revisited
Le Mens, G.; Hannan, M.T.; Polos, L.
Abstract
Empirical evidence about the relation between organizational age and failure is mixed, and theoretical explanations are conflicting. We show that a simple model of organizational evolution can explain the main patterns of age dependence and reconcile the apparently conflicting theoretical predictions. In our framework, the predicted pattern of age dependence depends crucially on the quality of organizational performance immediately after founding and its subsequent evolution, which in turn depends on the intensity of competition. In developing our theory, we clarify issues of levels of analysis as well as the relations between organizational fitness, endowment, organizational capital, and the hazard of failure. We show that once organizational learning is considered, founding conditions affect the fate of organizations in ways more complex than previously acknowledged. We illustrate how the predictions of our theory can be tested empirically and evaluate the effect of aging on the mortality hazards of American microbreweries and brewpubs by estimating the parameters of a random walk with timevarying drift. We also make some conjectures about expected patterns in other empirical settings.
Citation
Le Mens, G., Hannan, M., & Polos, L. (2011). Founding Condition, Learning and Organizational Life Chances: Age Dependence Revisited. Administrative Science Quarterly, 56(1), 95-126. https://doi.org/10.2189/asqu.2011.56.1.095
Journal Article Type | Article |
---|---|
Publication Date | Mar 1, 2011 |
Deposit Date | May 12, 2011 |
Journal | Administrative Science Quarterly |
Print ISSN | 0001-8392 |
Electronic ISSN | 1930-3815 |
Publisher | The Johnson School |
Peer Reviewed | Peer Reviewed |
Volume | 56 |
Issue | 1 |
Pages | 95-126 |
DOI | https://doi.org/10.2189/asqu.2011.56.1.095 |
Public URL | https://durham-repository.worktribe.com/output/1509950 |
You might also like
Conceptual spaces and the consequences of category spanning
(2015)
Journal Article
An Ecology of Social Categories
(2014)
Journal Article
Downloadable Citations
About Durham Research Online (DRO)
Administrator e-mail: dro.admin@durham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search