Description
This excerpt from the book discusses how the number of organizations in a population changes over time. The authors use a diverse group of organizations to study how density, legitimacy, and competition affects the growth and decline of organizations. They conclude that density-dependent legitimation and competition are important factors in the growth and decline of organizations.
Why does the number of organizations of any given kind vary over time? Utilizing a diverse group of organizations including national labor unions, newspapers and newspaper publishers, brewing firms, life insurance companies, and banks, this book seeks to deepen and broaden the understanding of change in organizational populations by examining the dynamics of numbers of organizations in populations. Such an approach involves explaining the sources of growth and decline in the sum of organizations (what the authors call "density") over the histories of populations of organizations. The authors conclude their study by formulating a theory of density-dependent legitimation and competition.
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