Localized Competition, organizational changes, and organizational mortality : A study on early professional legal service industry in New York City

Abstract

This study investigated the explanatory power of environmental selection perspectives and organizational adaptation perspectives by examining the effects of density. intensity of size-localized competition and organizational changes on organizational mortality with New York City professional legal service industry during 1901-1929. Selection perspectives predicted that density. density at founding. and intensity of size-localized competition will be positively associated with organizational mortality. Results of this study in general provided support for the perspectives. The perspectives also predicted that organizational changes would increase organizational mortality. However. results of this study did not provide empirical supports for the hypothesis. On the basis of the empirical results. possibility of integrating selection perspectives and adaptation perspectives and future research directions were discussed.