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Empirical Validity of Density Dependence Hypothesis: Unobserved Heterogeneity and Failure Rates

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Authors
Lee, Kyungmook
Issue Date
1998
Publisher
College of Business Administration (경영대학)
Citation
Seoul Journal of Business, Volume 4(2):97~128(1998)
Keywords
U-shaped relation; failure rates; Innovation; Competition
Abstract
This study examined whether strong support for density dependence
hypothesis in previous studies was due to unobserved inter-firm
heterogeneity Using the population of Dutch accounting firms, we
compared two model's one without firm heterogeneity variables and the
other with those variables Firm heterogeneity vanables examined here
included the adoption of a partner-associate structure, firm slze, the
number of domestic offices, firm-level human and social capital,
founding type, and organizational changes. Results indicated that
regardless of the inclusion of firm heterogeneity variables, density had a
strong U-shaped relation mth failure rates as predicted by density
dependence hypothesis Implications and future research directions
were discussed.
ISSN
1226-9816
Language
English
URI
http://hdl.handle.net/10371/1843
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College of Business Administration/Business School (경영대학/대학원)Dept. of Business Administration (경영학과)Seoul Journal of BusinessSeoul Journal of Business Volume 04, Number 2 (1998)
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