a game theoretic approach for optimal time of use electricity pricing demand for electricity varies throughout the day increasing the average cost of power supply time of use tou pricing has been proposed as a demand side management dsm method to influence user demands in this paper we describe a game theoretic approach to optimize tou pricing strategies gt tou we propose models of costs to utility companies arising from user demand fluctuations and models of user satisfaction with the difference between the nominal demand and the actual consumption we design utility functions for the company and the users and obtain a nash equilibrium using backward induction in addition to a single user type scenario we also consider a scenario with multiple types of users each of whom responds differently to time dependent prices numerical examples show that our method is effective in leveling the user demand by setting optimal tou prices potentially decreasing costs for the utility companies and increasing user benefits an increase in social welfare measure indicates improved market efficiency through tou pricing

competition and social influence the diffusion of the sixth generation processor in the global computer industry1 when is a social actor most strongly influenced by its peers this article addresses this question by clarifying when computer firms were most strongly affected by the choices of their structurally equivalent rivals to adopt a well known technology intel s sixth generation processor the core hypothesis is that the effect of adoptions by structurally equivalent firms increases with the competitive pressure that a focal firm faces in its market position the results show that a chosen firm is most strongly influenced by comparable others when it faces scale based competition and is diversified the implications of this study are twofold a social actor s sensitivity to the conduct of others may depend not only on its place in a hierarchy but also on the nature of its ties to an external audience and a contingent theory of social influence may be necessary to characterize diffusion processes correctly particularly when external and time varying nonnetwork factors have significant effects

resource partitioning revisited evidence from italian television broadcasting the theory of resource partitioning proposes that competition among generalists in the center of a market can trigger a process of resource release that engenders a proliferation of specialist producers outside the center previous research has generally examined the relationship between this proliferation and market concentration a correlate of competitive intensity in the center of the market in this paper we extend the theory by arguing that resource release also occurs as the degree of competitive overlap among producers in the center intensifies even when concentration or other structural features do not vary we expand its implications by demonstrating that increased competitive overlap in the market center can enhance the viability of producers positioned near the center more than those in the periphery and we enrich and complete it by specifying the additional assumptions needed to extend the theory of resource partitioning to entry processes consistent with our expectations an empirical examination of the italian broadcast television industry from 1992 to 2003 finds that the failure rates of both near center and peripheral stations decline with greater competitive overlap in the programming of the national broadcasters with the failure rates of the near center stations falling more than those of peripheral stations greater competitive overlap similarly stimulates the entry of near center stations more than peripheral ones copyright 2013 the author 2012 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

organizational identities and the hazard of change industrial and corporate change volume 15 number 5 pp 755 784 doi 10 1093 icc dtl020 advance access published august 8 2006 organizational identities and the hazard of change michael t hannan james n baron greta hsu and ozgecan kocak we examine how the life chances and financial performance of nascent high technology firms were affected by two kinds of organizational changes altering founders blueprints for the employment relation and replacing a founder chief executive officer ceo by an outsider we argue that both events destabilize organizations but that changes in employment blueprints are tied more tightly to the organization s identity and thus are more destabilizing we analyze three dimensions of organizational performance among a sample of young high technology companies in california s silicon valley survival versus failure launching an initial public offering ipo and changes in financial valuations among organi zations that underwent an ipo as predicted changing the employment blueprint increased the hazard of failure and diminished growth in market value appoint ing an outsider as ceo did not affect the hazard of failure appreciably but did depress the rate of growth in market capitalization the implications of these results for ecological and institutional perspectives on organizations are discussed 1 imprinting identity and disruptive change the proposition advanced by hannan and freeman 1984 that altering an organiza tion s core features is hazardous has been the focus of much theorizing and empirical research barnett and carroll 1995 carroll and hannan 2000 this research has generally emphasized one side of the inertia story the disruption entailed in reorgan izing routines and architectures the other side of the story that changes in core fea tures might be viewed as violations of deep seated taken for granted expectations by key organizational constituents has received less attention this article attempts to redress the balance by developing an identity based notion of an organization s core and testing the proposition that changing such core features is especially destabilizing notions of identity played an important part in shaping the original inertia argu ment for instance hannan and freeman 1984 155 156 motivated their argument with the example of the university although some features such as textbooks con stantly change in an adaptive way changing a curriculum from liberal arts to voca tional training would be extraordinarily difficult the curriculum is difficult to the author 2006 published by oxford university press on behalf of associazione icc all rights reserved

exploring the niche overlaps between organizational ecology and industrial economics the goal of this essay is to bring the work of organizational ecologists on population dynamics to the attention of economists and to try to engineer an exchange of ideas between the two subjects following a relatively brief exposition of the basic arguments made by organizational ecologists we explore a number of areas where cross fertilization between organizational ecology and industrial economics seems promising these include examining the limits of competitive exclusion exploring how models that focus on selection between firms might apply to selection between products linking models of population dynamics to models which explain changes in market structures over time understanding the sources of structural inertia which limit the ability of firms to react to market events we conclude by making a few observations on what each group of scholars might learn from the other copyright 2001 by oxford university press

dynamics of niche width and resource partitioning this article examines the effects of crowding in a market center on rates of change in organizational niche width and on organizational mortality it proposes that although firms with wide niches benefit from risk spreading and economies of scale they are simultaneously exposed to intense competition an analysis of organizational dynamics in automobile manufacturing firms in france germany and great britain shows that competitive pressure not only increases the hazard of disbanding but also prompts organizational transformations that give rise to processes of resource partitioning emphasizing the content process distinction in conceptualizing organizational change the article finds that the process effect of changes in niche width and position increases mortality hazards we discuss our findings in light of the processes investigated by the ecological theories of density dependence resource partitioning and structural inertia and point to the theoretical links that help to integrate these theories

integrative capabilities vertical integration and innovation over successive technology lifecycles the analysis presented here provides a new explanation for why vertically integrated and specialized firms may continue to coexist as industries evolve especially during time periods when conditions unequivocally favor lower cost specialized firms in contrast to the common view that firms should match their organizational form to the prevailing nature of technology vertically integrated firms may rationally choose to stay integrated and bear the sunk costs of developing integrative capabilities as well as the ongoing costs of maintaining them even when they lose money during some time periods due to competition from lower cost specialized firms in particular in industries characterized by successive systemic innovations which entail interdependence across stages of production some firms may remain vertically integrated to maintain their capability to innovate over multiple cycles of technological innovation the results hinge on the sunk costs of long lived investments in integrative capabilities an extension to the analysis suggests that vertically integrated firms may retain their organizational form to pioneer systemic innovations in other industries including industries not subject to frequent technology lifecycles providing another explanation of product market diversification and market entry over time

why is there no cannery in cannery row exploring a behavioral simulation model of population extinction available ecological models of organizations do not provide satisfactory explanation for population extinction in this article we search for a minimal set of assumptions needed to expand the range of dynamic behaviors of the ecological model of density dependence to admit extinction while preserving its original insight the revised version of the model builds on two core assumptions the first is that organizational populations are linked to their environments through feedback processes of resource generation and consumption as a consequence the carrying capacity for an organizational population changes systematically with its density the second assumption is that organizational vital rates respond with delay to changes in the level of available resources as a consequence organizational founding and mortality rates are affected by expectations that decision makers form about the future state of their environment using computer simulation we test these assumptions and show that the relative speed at which processes of resource regeneration and consumption happen and the speed at which expectations about future levels of resources are revised jointly determine a wide range of evolutionary trajectories that admit population extinction as one distinct possibility the model is validated using multivariate sensitivity analysis techniques we discuss the implications of our findings in the broader context of the current debate on the implications of selective sampling in the study of organizational populations copyright 2012 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

industrial evolution through complementary convergence the case of it security the article addresses the dynamics through which product markets become derailed from early product life cycle plc tracks and engaged in complementary convergence with other product markets or industries we compare and contrast the theories that can explain respectively the plc and the derailing of this cycle into a process of complementary convergence the article challenges the standard industry conception and proposes a distinction between the emergent industrial sector the emergent product market or niche and the industry as a more well established entity based on empirical evidence from the it security sector two trajectories of complementary convergence are identified lower order integration the integration of different product markets in a sectoral context and higher end integration the integration of product markets into the offerings of established industries while young ventures dominate lower order integration incumbents in established industries dominate higher order integration for both trajectories mergers and acquisitions represent a central means for realizing convergence copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

recruitment based competition between industries a community ecology because entrepreneurs often must recruit labor in order to launch their ventures the labor market is a potential source of constraint in the entrepreneurial process moreover competition in the labor market likely does not end at the boundaries of the product market as industries overlap in their needs for labor i use an organizational ecology framework to examine how founding rates in an industry vary with the degree of competition with other industries for labor and thereby provides evidence of recruitment based competition between industries in a community ecology the extent of recruitment based overlap between industries is inferred from data on flows of employees within and between industries analyses of founding rates in eighty four industries in denmark over the period 1980 1991 suggest that new firms are less likely to appear in industries that occupy crowded regions of the labor market copyright 2004 oxford university press

comparing centralized and decentralized contract design enabling direct load control for reserves demand response could provide reserves to power systems and market designs should enable cost efficient exploitation of these resources in direct load control programs consumers provide demand response in exchange for incentive payments the success of such contracts is a function of level of information sharing consumer costs and power system constraints costs in this paper we compare three approaches to contract design each of which assumes different levels of consumer privacy our aim is to explore tradeoffs between privacy resource exploitation and the reward earned by the load aggregator the first approach assumes full and truthful information exchange between the consumer and the system operator we then develop a novel centralized approach in which an aggregator applies mechanism design to offer contracts to consumers who reveal partial cost information a novel decentralized approach is developed in which consumers act cooperatively to pool demand response reserves enabling them to keep individual cost information private through simulation studies we find that in the centralized approach resource exploitation rewards are highly sensitive to the accuracy of the load aggregator s consumer cost curves approximations we also find that in the decentralized approach rewards can be small especially if information exchange is costly

the evolution of comparative or competitive advantage a preliminary report on a study this paper is a preliminary report on a study of the comparative evolution of several major high tech industries in the us japan and western europe in general the paper examines similarities and differences in the ways these industries developed in different countries and the factors explaining those differences the project especially focused on understanding the instances when firms in a particular country gained a strong competitive advantage over firms based in other countries the industries studied are organic chemical products computers semiconductors software numerical controlled machine tools pharmaceuticals in the age of biotechnology and medical devices copyright 1996 by oxford university press

status inconsistency and product valuation in the california wine market this study develops a theoretical model on the role of multidimensional status and status inconsistency in market evaluation processes a product or an organization may acquire multiple status indicators in association with a multitude of market institutions we argue that when status indicators are consistently positive each exerts a greater positive effect on the valuation of a product or an organization conversely inconsistency among multiple indicators undermines the status claim we test this theoretical proposition by examining patterns of product valuation in the california premium wine market our findings show that when an individual wine s tasting score rated by critics and another more general status indicator classified appellation affiliation extra designation on the label or a winery s organizational status are consistently positive each makes a greater contribution to wine price in contrast when status indicators are inconsistent the value of the positive status indicator is reduced our study explicates the scope conditions under which market status may yield different outcomes and sheds light on the interplay among status indicators in market valuation

portfolio and contract design for demand response resources abstract electricity generation from renewable energy sources has seen significant growth in recent years to improve grid integration of these volatile energy resources demand side flexibility can be operationalized through intelligent scheduling of flexible electrical loads prior research has mainly focused on determining dispatch schedules for exogenously given portfolios of flexible electricity demand we expand on this literature by considering both contracting and dispatch of flexible loads to this end we formulate a demand aggregator s problem of designing and dispatching a portfolio of supply volatile renewable and conventional generators and demand inflexible base shiftable and curtailable load assets as a stochastic program to account for different contracting regimes we consider three market scenarios 1 a liquid flexibility market where the energy retailer is a price taker 2 an opaque market where non strategic customers will accept any individually rational contract offer and 3 a bi level model with strategic customers optimally self selecting into available contracts in the last case we also explore the effect of price discrimination versus uniform pricing we evaluate these models using empirical load and generation data contrary to conventional wisdom we find that flexibility contracting is not monotone increasing in renewable generation capacities our research also suggests that curtailable load is a closer substitute to supply flexibility than shiftable load finally we find that contracting of curtailing flexibility will be harder to implement if the aggregator has limited market power

why the microbrewery movement organizational dynamics of resource partitioning in the u s brewing industry1 the number of small specialty brewers in the u s beer brewing industry has increased dramatically in recent decades even as the market for beer became increasingly dominated by mass production brewing companies using the resource partitioning model of organizational ecology this article shows that these two apparently contradictory trends are fundamentally interrelated hypotheses developed here refine the way scale competition among generalist organizations is modeled and improve the theoretical development of the sociological bases for the appeal of specialist organizations products especially those related to organizational identity evidence drawn from qualitative and quantitative research provides strong support for the theory the article offers a brief discussion of the theoretical and substantive issues involved in application of the model to other industries and to other cultures

generators and the cost of electricity outages abstract investment in back up generators is treated as insurance against the adverse effects of power outages a theoretical model is developed which implies that the cost of outages may be inferred from revealed preference data on expenditure on generators the conditions for the optimal social provision of electricity reliability are discussed

getting there exploring the role of expectations and preproduction delays in processes of organizational founding because of preproduction delays environmental conditions at founding cannot explain organization building decisions taken earlier as a consequence environmental conditions at founding cannot explain organizational founding future levels of resource availability may be estimated but not directly observed by potential entrepreneurs at the time at which they decide to enter preproduction in this paper we take these considerations as our starting point to build a dynamic feedback model of organization founding according to the model organizational founding is driven by expectations that entrepreneurs form about future levels of resources and only indirectly by current levels of population density we explore the behavior of the model under a variety of experimental conditions we show that the qualitative behavior of the model is consistent with studies that have linked the duration of preproduction stage with fluctuations in density during population maturity our simulation analyses sustains three main conclusions first historical trajectories of organizational populations that are consistent with empirical observations may be produced by mechanisms that are not directly dependent on density second alternative hypotheses about how expectations are formed produce qualitatively different historical trajectories of density third fluctuations in numbers of organizations are linked to specific aspects of individual organization building decisions

resource partitioning the founding of specialist firms and innovation the american feature film industry 1912 1929 past research has established that large bureaucratic firms are less innovative than other firms this reduced innovativeness is likely to be exacerbated when large firms engage in market control in cultural industries the effects can be especially pernicious resulting in the failure to provide audiences with artistic quality or product diversity we investigate the population dynamics of one cultural industry the early american feature film industry specifically we examine the hypothesis that concentration among large generalist firms will be associated with higher rates of foundings of specialist producers and specialist distributors we also investigate the question of whether these specialists are more innovative specifically we examine the hypothesis that specialists were more active than were generalists in the creation of new film genres in the early years of the american film industry we find that increased concentration among generalists had a positive effect on foundings of specialist producers and specialist distributors and that the specialists were more active in the creation of new film genres implications of these findings for future research both on cultural industries and on the population dynamics of the founding of specialist firms are discussed

the ecology of organizational mortality american labor unions 1836 1985 this research analyzes the disbanding rates of the full population of american national labor unions for the period 1836 1985 it tests the hypothesis drawn from population ecology theory that di

shrewd crude or simply deluded comovement and the internet stock phenomenon we show that i return comovement among internet stocks during the late 1990s and early 2000 was not exceedingly high ii there was substantial consistency in the manner by which investors distinguished among internet stocks and iii high comovement is most common during periods of price erosion these results cast doubt on the view that the extraordinary appreciation of internet stocks was due to the crude classification of all such stocks as members of a hot category

social movements and organizational form cooperative alternatives to corporations in the american insurance dairy and grain industries how do social movements promote diversity and alternative organizational forms we address this question by analyzing how cooperative enterprise was affected by the grange a leading anticorporate movement in the united states during the late nineteenth and early twentieth centuries state level analyses across three industries yield three findings first the grange had positive effects on cooperatives and mutuals during the nineteenth century populist struggles over corporate capitalism second these effects were stronger where corporations counter mobilized to block challengers political efforts grangers pursued economic organization as an alternative to politics and in response to blocked political access third the grange continued to foster cooperatives even as populist revolts waned it did so however by buffering cooperatives from problems of group heterogeneity and population change rendering them less dependent on supportive communities and specific economic conditions these findings advance research at the movements organizations interface by documenting movement effects and by isolating different causal pathways through which mobilization counter mobilization and political opportunity shape economic organization the results also provide economic sociology with new evidence on how social structure moderates economic forces and help revise institutional analyses of american capitalism by showing how cooperatives emerged as significant rather than aberrant elements of the u s economy

effects of ancestral populations on entrepreneurial founding and failure private liquor stores in alberta 1994 2003 until 1993 all liquor stores in the canadian province of alberta were government owned and run in the fall of 1993 the provincial government exited liquor retailing all government stores were shut down and entrepreneurs were allowed to open private liquor stores in this article we take advantage of this abrupt regulatory change in the alberta liquor retailing industry to address two related issues that have received little empirical attention first we investigate how an ancestral population affects processes of legitimation and competition while density dependence theory predicts that legitimation effects outweigh competitive effects at low levels of density will this be the case when a new population replaces a similar ancestral one second beyond density dependence we investigate how ancestral populations affect the locations of new entrepreneurial ventures will entrepreneurs follow ancestral location patterns and will these ancestral locations confer survival advantages to answer these questions we map all private liquor stores on the street map of calgary alberta s largest city from 1994 to 2003 and analyze store founding and failure we use our results to draw implications for theories of density dependence entrepreneurial behavior and industry spatial structure copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

diversity scale and sustainability in human systems towards a research agenda abstract this paper explores the relationship between diversity locality scale and sustainability in human systems using examples from brewing steel production and printing it suggests mass production economies of scale has peaked creating new opportunities and challenges for sustainability science it is concluded that there is a potential research agenda in seeking to understand where how why at what cost and under what conditions smaller scale may yield sustainability advantages

a community level analysis of sources and rates of technological variation in the microprocessor market this research sought to identify the sources and rates of technological variation in an industry using a community level framework using data on all merchant producers of microprocessors from 1971

recombinant property in east european capitalism recombinant property is a form of organizational hedging in which actors respond to uncertainty by deversifying assets redefining and recombining resources it is an attempt to hold resources that can be justified by more than one legitimating principle property tansformation in postsocialist hungary involves the decentralized reorganization of assets and the centralized management of liabilities together they blur the boundaries of public and private the boundaries of enterprises and the boundedness of justificatory principles enterprise level field research data on the ownership structure of hungary s 220 largest enterprises and banks and an examination of the government s recent debt consolidation programs suggest the emergence of a distinctively east european capitalism that will differ as much from west european capitalism as do contemporary east asian variants

dynamic capabilities and internationalization of authentic firms role of heritage assets administrative heritage and signature processes we study mnes that tie their long lasting competitiveness and internationalization to the deployment of their heritage assets administrative heritage and signature processes built in their home markets when faced with changes these authentic firms scan for and buffer against threats to their signature processes use their heritage endowment to focus on their capacity to maintain and defend their niches and preserve their capacity for stability we complement the traditional dynamic capabilities perspective by redefining its boundary conditions furthermore authentic firms resist and limit local adaptation of process and products and internationalize only if opportune by deploying preservation capabilities

analyzing the functional dynamics of technological innovation systems a scheme of analysis various researchers and policy analysts have made empirical studies of innovation systems in order to understand their current structure and trace their dynamics however policy makers often experience difficulties in extracting practical guidelines from studies of this kind in this paper we operationalize our previous work on a functional approach to analyzing innovation system dynamics into a practical scheme of analysis for policy makers the scheme is based on previous literature and our own experience in developing and applying functional thinking it can be used by policy makers not only to identify the key policy issues but also to set policy goals

the cost of electric power interruptions in the industrial sector estimates derived from interruptible service programs the electric power industry has become increasingly interested in the value customers place upon service reliability with the demand for reliability couched in terms of outage or shortage costs the survey based method of eliciting these costs dominates the literature this paper explores and demonstrates a method for estimating outage and shortage costs based upon behavioral data a discrete choice model is developed for estimating shortage costs using observed decisions of industrial customers regarding participation in interruptible service programs the resulting shortage cost estimates of 4 per kwh unserved for a one hour interruption are consistent with previous survey based estimates

ripples of fear the diffusion of a bank panic community reactions against organizations can be driven by negative information spread through a diffusion process that is distinct from the diffusion of organizational practices bank panics offer

interruptible electricity contracts from an electricity retailer s point of view valuation and optimal interruption we consider interruptible electricity contracts issued by an electricity retailer that allow for interruptions to electric service in exchange for either an overall reduction in the price of electricity delivered or for financial compensation at the time of interruption we provide a structural model to determine electricity prices based on stochastic models of supply and demand we use stochastic dynamic programming to value interruptible contracts from the point of view of an electricity retailer and describe the optimal interruption strategy we also demonstrate that structural models can be used to value contracts in competitive markets our numerical results indicate that in a deregulated market interruptible contracts can help alleviate supply problems associated with spikes of price and demand and that competition between retailers results in lower value and less frequent interruption

a time to grow and a time to die growth and mortality of credit unions in new york city 1914 1990 one vision of organizational evolution suggests that old and large organizations become increasingly dominant over their environment a second suggests that as organizations age they become less able to respond to new challenges in this article the authors investigate which of these visions best characterizes the evolution of state chartered credit unions in new york city from 1914 through 1990 by analyzing the effects of organizational age size and population density on rates of organizational failure and growth the authors find evidence that old and small institutions are more likely to fail while young and small organizations have the highest growth rates

grades of membership and legitimacy spillovers foreign banks in shanghai 1847 1935 in this study we formulated and tested a theory about how heterogeneity among subpopulations affects the degree to which organizations in these subpopulations contribute to and benefit from the overall population s legitimacy historical data on banking in shanghai were used firms in subpopulations with a higher grade of membership were found to contribute strongly to the legitimacy of the general population firms in subpopulations with a lower grade of membership benefited most from legitimacy spillovers the concepts of fuzzy density contrast and public acceptance were applied to measuring legitimacy

designing incentive compatible contracts for effective demand management demand relief from customers can help a utility or any load serving entity solve a variety of problems there exist all sorts of different demand management programs that utilities use a critical issue is the incentive paid to the customer to participate in demand management programs and provide load relief the utility has to design cost effective yet attractive demand management contracts the main goal is to get load relief when needed and to do so in a cost effective way customers sign up for programs when the benefits they derive in the form of up front payments demand discounts and interruption payments exceed their cost of interruption in order to design such contracts mechanism design with the revelation principle is adopted from game theory and applied to the interaction between a utility and its customers the idea behind mechanism design is to design an incentive structure that encourages customers to sign up for the right contract and reveal their true value of power and thus the value of power interruptibility

resource partitioning and the organizational dynamics of fringe banking we examine the emergence and proliferation of payday lenders fringe businesses that provide small short term but high cost loans we link the organizational dynamics of these businesses to two trends in consumer lending in the united states the continuing consolidation of mainstream financial institutions and the expansion of such institutions in the provision of financial services regarded as similar to payday loans we explain the coexistence in mature industries of large scale organizations in the market center and smaller specialists in the periphery by testing and extending the organizational model of resource partitioning our focus is on two under examined aspects of the model the dynamic underlying the partitioning process and the conditions under which the market remains partitioned the empirical analysis covers payday lenders banks and credit unions operating in wisconsin between 1994 and 2008

davids against goliath collective identities and the market success of peripheral organizations during resource partitioning this paper contributes to the sociology of markets literature by arguing that collective identities sustain the market success of peripheral producers during the process of resource partitioning two conditions underlie the positive returns obtained by peripheral producers from their identity claims first the demise of near center producers crystallizes the difference among classes of organizations which benefits the market success of peripheral producers second individual peripheral producers i facing an audience that values their identity claims and ii exhibiting credible engagement with their claimed identity encounter greater market success our contributions to the literature are discussed

market positioning the shifting effects of niche overlap organizational ecology models of market dynamics emphasize the competitioninducing role of inter organizational niche overlap targeting similar market niches increases competitive pressure and thus reduces organizations fitness recent studies however have suggested that moderate niche overlap may positively influence organizational viability by enhancing comparability and promoting legitimacy spillovers data on consumers impressions of dutch music festivals and on the growth and decline of early internet search engines were used to test the proposition that niche overlap may in fact be non monotonically related to organizational fitness since new organizations must first gain recognition by being comparable to others they will benefit more from niche overlap than older incumbents the results confirm that both the appeal that organizations generate as well as their growth rates are non monotonically related to niche overlap and that positive effects of niche overlap decrease with organizational age

things change dynamic resource constraints and system dependent selection in the evolution of organizational populations an extensive empirical literature has demonstrated the existence of density dependent selection in organizational vital rates this research has also shown that historical trajectories followed by organizational populations only partly conform to the predictions of the original model inconsistencies with the model s predictions prompt a series of questions why do organizational populations suddenly collapse after reaching a peak why do organizational populations oscillate after collapsing what causes extinction of organizational forms to address these questions scholars have proposed a variety of modifications to the original model of density dependence all have merit but none is completely satisfying the main objective of this study is to narrow the gap between theories models and observed historical trajectories by identifying a unitary analytical framework that can account for the variety of empirical trajectories typically followed by mature organizational populations the model that we present is based on the hypothesis of system dependent selection according to which patterns of resource availability are produced by processes that are partly endogenous to organizational populations the main analytical insight of the study is that under conditions of dynamic resource constraints introduced by system dependent selection the presence of population level inertia leads to a rich variety of historical trajectories during population maturity we show that this result holds in the absence of any particular assumption about the microstructure of organizational populations possible trajectories include sustained oscillations resurgence and extinction

long term evolutionary change in organizational populations theory models and empirical findings in industrial demography organizational ecology is a theoretical perspective on organizations that attempts to explain long term social evolution especially the rise and fall of organizational populations this artist review the most sustained demographic research program of the perspective one based on the density dependent model of legitimation and competition it discusses the theoretical model and evidence from industrial demography that has been offered in its support as well as criticisms that have been registered unresolved research problems of the program are identified and three major models in progress attempting to address these open questions are discussed and compared copyright 1997 by oxford university press

for whom the bell tolls ecological perspectives on industrial decline and resurgence over the last twenty five years research in organizational ecology has given rise to a proliferation of mechanisms that seek to explain processes of decline and resurgence in mature industries in this article i consider four of these mechanisms including arguments concerning competitive intensity temporal heterogeneity population inertia and community ecology and apply them to explain the evolution of us medical schools between 1765 and 1999 for this population mechanisms relying on organizational variation in competitive intensity especially mass dependence accounts perform poorly in terms of theoretical and empirical adequacy models that incorporate temporal heterogeneity in industrial competition and legitimation explain more variation in patterns of growth and decline but are sensitive to right censoring and model specification ecological mechanisms that explicitly analyze population inertia or community ecology seem to be the most promising in terms of theoretical and empirical consistency ironically this finding seems to vindicate the model of population growth advanced in hannan and freeman s seminal article which has sometimes been discounted as failing to represent the evolution of mature industries in a realistic manner copyright 2004 oxford university press

turning back the clock in baseball the increased prominence of extrinsic rewards and demand for authenticity this paper addresses why customers at times prefer traditional practices deemed more authentic to a domain particularly where these practices had previously been discarded as inferior i argue that customer demand for authenticity can be triggered when extrinsic rewards i e fame or money increase in prominence in a market causing audiences to doubt the motives of the market s producers i examine this dynamic in the context of major league baseball where appreciation for traditional stadium features seemingly arose after the advent of free agency heightened awareness and coverage of the economic rewards in the sport experimental analysis validates the proposed mechanism whereby increased fan exposure to extrinsic rewards increases concern about player inauthenticity which increases preference for traditional stadium features quantitative analysis of attendance patterns provides external validation for these experimental findings by showing that authenticity was more highly preferred in the for

the contingent nature of public policy and the growth of u s commercial banking runner up academy of management s best published paper in organization and management theory in 2009

getting known by the company you keep publicizing the qualifications and former associations of skilled employees when product quality cannot be ascertained in advance of purchase producers must convince relevant audiences that they are worthy of consideration as quality players we propose that quality oriented producers will selectively publicize information about their skilled employees in anticipation of signaling benefits which include the accrual of visibility and the projection of quality based identities we validate our perspective on publicizing affiliation information by analyzing how a sample of australian wine producers publicized specific career information about their skilled employees i e their winemakers including the names of certain former employers of these individuals copyright 2009 oxford university press

the competitive dynamics of status and niche width us investment banking 1920 1949 by integrating the status based model of market competition and the resource partitioning model this paper develops the resource status space imagery of markets and two propositions first the paper argues that the benefit that an organization derives from an increment in status is not independent of the organization s niche width second the paper considers the implications of status based stratification for the resource partitioning model s specification of the effects of increasing market concentration using the resource status space imagery this paper posits that if expanding generalists are reluctant to lower their status or are unable to increase their status they will expand within their current status level the expanding generalists will thus encroach on the niches of similar status generalists and specialists rather than expand into the niches of generalists across the whole status spectrum we discuss implications for the sociology of markets copyright 2000 by oxford university press

store wars the enactment and repeal of anti chain store legislation in america1 competition between organizational forms manifests itself in political contention over the law the authors analyze the political strength and organization of the groups that supported and opposed state anti chain store laws the enactment of these laws depended on intrastate political activity and the interstate diffusion of anti chain store legislation the repeal process relied on suprastate activity as nationally organized pro chain store forces shifted the arena of contention to the supreme court and forged national alliances with labor unions and agricultural cooperatives in both enactment and repeal the political resources and strategies of organziational forms interacted with existing institutions to determine the trajectory of institutional change

the dynamics of rapid industrial growth evidence from sweden s information technology industry 1990 2004 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

local appeal and competition in multiple geographic markets evidence from california retail banking between 1900 and 1990 this article assesses the effect of identity related local appeal when firms compete in multiple geographic markets and investigates how local appeal and multimarket advantages collectively determine the competitive strength of an organization compared with numerous studies that identified the benefits for being a chain system recent researches on organizational identity highlight the social sanctions and discount when an organizational form does not fully conform to the norms and expectations at a given market empirical evidence from california retail banks in the 20th century demonstrates that organizational identity can be an important source of competitive strength even when considerable scale and scope advantages exist however when customers are not locally oriented an organization s identity based appeal becomes less meaningful such a finding suggests the scope condition for organizational identity research

oppositional identities and resource partitioning distillery ownership in scotch whisky 1826 2009 we build on recent theory and research on the role of categories in resource partitioning we analyze scotch whisky making between 1826 and 2009 a case that seemed initially to fail to conform to the pattern of the beer industry now treated as prototypical on close examination both qualitative and quantitative we find that high concentration in the center of the market is not sufficient to generate a partition rather we see a long delay between the heightening of concentration in the industry and the emergence of a cluster of peripheral producers that claim an identity in opposition to the dominant generalists we explain the source of the delay as a function of the nature of the audience which until recently did not regard conglomerate or foreign ownership of distilleries as an impediment to producing authentic whisky only when critics started to question how ownership of distilleries related to authenticity did the revival of the traditional form of ownership begin to occur by analyzing entries

coming forward the effects of social and regulatory forces on the voluntary restatement of earnings subsequent to wrongdoing we investigate the effects of social and regulatory forces on a firm s decision to disclose past wrongdoing by voluntarily restating its earnings with an eight year sample of more than 2 500 public firms including 170 voluntary restaters we find that firms are more likely to voluntarily restate their earnings in response to informal social pressures from other firms in their industry and less likely to do so in response to formal regulatory sanctions we also show that the impact of these forces varies with firm status we contribute to corporate governance and public policy research that examines the effectiveness of hard versus soft deterrence measures on firm compliance

sticky aspirations organizational time perspective and competitiveness managers evaluate the organizational performance by comparing it with historical aspiration levels and are more likely to make strategic changes when the performance falls below the aspiration level historical aspiration levels can be updated with different speed because a focus on current performance will lead to quickly adjusting aspiration levels where historical performance has low weight while a focus on past performance will lead to slowly adjusting performance levels where the current performance has low weight a simulation model of aspiration level learning and strategic change under uncertainty yields the following findings 1 slow adjustments of an aspiration level gives higher performance across different levels of environmental uncertainty 2 slow adjustments of aspirations will dominate in populations with different adjustment levels if low performing organizations are removed and replaced by organizations of the form currently performing best and 3 stronger selection leads to faster domination by slow adjusters empirical analysis of format changes in radio stations finds slow adjustment of aspiration levels to be prevalent and finds slower adjustment in competitive markets as predicted

the evolution of new industries and the determinants of market structure several empirical regularities concerning firm growth rates and industry firm size distributions have been developed by studying primarily mature industries the primary purpose of this article is to bring together and extend empirical regularities on the evolution of new industries and to use these regularities to gain further insight into the forces governing industry evolution to explain these regularities a model is constructed which emphasizes how factors governing the early evolution of industries may shape their market structure at maturity it stresses how chance events and exogenous factors that influence the number of potential entrants to the industry the growth rate of incumbents and the ease of imitation of industry leaders will influence the ultimate number and size distribution of firms in the industry

the imprint of labor markets on entrepreneurial performance abstract using the 1979 2010 waves of the national longitudinal survey of youth our study tracks the earnings of individual entrepreneurs from the beginning of their entrepreneurial careers examining the effects of labor markets on their earnings trajectory results show that apart from self selection labor markets impose a penalty on the initial earnings of entrepreneurs who start a business in adverse economic conditions a disadvantage that persists for up to a decade we also identify two factors expected to alleviate the imprinting effect of labor markets migration outside the imprinting environment and serial entrepreneurship

effect of demand management on regulated and deregulated electricity sectors abstract our society derives a quantifiable benefit from electric power in particular forced outages or blackouts have enormous consequences on society one of which is loss of economic surplus the society relies on having a continuous supply of electrical energy some customers may willingly risk this continuous supply and participate in demand management programs for electrical power if the power system grid is in trouble electric utilities need to have demand relief customers willing to reduce their demand to help the system can receive an incentive fee for helping the utilities demand relief can be system wide or location specific sometimes it can be more effective to fix the electrical demand vs supply imbalance from the demand side the value of demand management contracts is greatly affected by customer location inclusion of locational attributes into the contract design procedure increases the effectiveness of the contracts by helping a utility get more value from its demand management programs independent system operators and regulators among others can also benefit from effective demand management this paper will investigate how this type of demand management contracts can help the electricity sector both in regulated and deregulated environments

a framework to implement supply and demand side contingency management in reliability assessment of restructured power systems this paper presents a framework to implement supply and demand side contingency management in the reliability assessment of hybrid power markets a model for the independent system operator iso to coordinate reserve and load curtailment bids for contingency states is introduced to balance reliability worth and reliability cost the load curtailments and generation re dispatch for a contingency state are determined based on minimizing the market interruption cost using an optimization technique a nonsequential monte carlo simulation technique based on this framework has been proposed to evaluate the customer reliability of restructured power systems with the hybrid market model the modified ieee reliability test system rts is used to illustrate the proposed technique

ideological purity vs hybridization trade off when do islamic banks hire managers from conventional banking organizations that compete in institutional environments in which oppositional logics compete for dominance face a risk return trade off between maintaining ideological purity versus pragmatism by borrowing template elements from the rival ideology deviating from ideological purity might improve a firm s competitive strength however at the same time it might also undermine its very identity and legitimacy although such decisions are of strategic importance research about why how and where these trade offs are made is still limited we develop the argument that organizations will be more likely to deviate from ideological purity when the potential return of borrowing from the oppositional template exceeds the perceived risk of doing so the more organizations aspire to be ideologically pure the more they are constrained by the moral codes that define the category and therefore the higher the risk associated with deviating from purity however given the potential benefits of pragmatism pure or

product mixes as objects of choice in non parametric efficiency measurement abstract non radial measures of technical efficiency essentially differ from their radial counterparts in that the product mix of the efficient reference is allowed to be different from the product mix of the evaluated observation whereas existing non radial measures are still based on the product mix of the evaluated i e possibly inefficient observation we change the perspective and propose a measure based on the mix properties of the efficient reference the resulting inverse measure can be considered as complementary to the fare lovell or russell efficiency measure

semi radial technical efficiency measurement semi radial efficiency measurement combines technical efficiency as captured by the classical farrell measure with an economically meaningful mix efficiency component the semi radial evaluation we propose proceeds in two steps first we build on the price interpretation of the generally accepted koopmans efficiency notion to characterize appropriate benchmarks next we present both a quantity based distance measure and its dual price based equivalent to evaluate the mix efficiency factor the type of measures we propose may e g be used to provide a price rationale for the zieschang technical efficiency evaluation procedure

social identity market memory and first mover advantage considerable attention goes to whether there is a first mover advantage among organizations technical mechanisms have been considered for this advantage such as learning and occupancy of preferred market segments we argue that first movers may also benefit from a social identity advantage because being identified as the original in a market implies authenticity when first mover advantage is based on such an identity market memory is important initially audiences distinguish the originality of the first mover but as time passes such differences are less recognizable we find evidence of this pattern and that organizations are constrained from expanding beyond where their identity is established the results suggest the usefulness of a sociological approach to understanding the first mover strategy copyright 2013 the author 2012 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

the life cycle of a competitive industry firm numbers first rise then later fall as an industry evolves this nonmonotonicity is explained using a competitive model in which innovation opportunities fuel entry and relative failure to innovate prompts exit equilibrium time paths for price and quantity also share features of the data the model is estimated using data from the u s automobile tire industry a particularly dramatic example of the nonmonotonicity in firm numbers

market based coordination of thermostatically controlled loads part i a mechanism design formulation this paper focuses on the coordination of a population of thermostatically controlled loads tcls with unknown parameters to achieve group objectives the problem involves designing the device bidding and market clearing strategies to motivate self interested users to realize efficient energy allocation subject to a peak energy constraint this coordination problem is formulated as a mechanism design problem and we propose a mechanism to implement the social choice function in dominant strategy equilibrium the proposed mechanism consists of a novel bidding and clearing strategy that incorporates the internal dynamics of tcls in the market mechanism design and we show it can realize the team optimal solution this paper is divided into two parts part i presents a mathematical formulation of the problem and develops a coordination framework using the mechanism design approach part ii presents a learning scheme to account for the unknown load model parameters and evaluates the proposed framework through realistic simulations

employing identities in organizational ecology this paper argues for greater attention to employment based organizational identities in ecological theory and research i define and explore three dimensions of particular relevance to labor market identities sharpness resonance focus and authenticity the paper offers some speculations regarding i when labor market identities are most decisive for organizations ii how product market and labor market identities interact iii how employment based organizational identities might be operationalized and iv how greater attention to such identities would illuminate key issues in organizational ecology copyright 2004 oxford university press

an ecological analysis of competition among us communities we apply the ecological concept of the organization s niche pioneered by john freeman and mike hannan to the study of geographic communities we define a community s market niche by the ties linking a community to the industries on which it depends for growth we then hypothesize that the extent to which a community s market niche is occupied by other communities is a source of constraint and opportunity depending on the geographical locations of the communities that occupy the same market niche geographically distant communities occupying similar market niches are hypothesized to experience primarily constraint arising from competition for opportunities of exchange geographically proximate communities occupying similar market niches are hypothesized to face constraint arising from competition for exchange opportunities as well as opportunity arising from access to valuable resources associated with the existence of similar others empirical analyses of firm foundings and exits across us communities support these hypotheses implications of our findings for ecological research on the niche and for the literature on communities are discussed copyright 2012 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

oppositional logics and the antecedents of hybridization a country level study of the diffusion of islamic banking windows 1975 2017 little is known about when and where hybrid organizations diffuse we argue that neo institutional perspectives which stress the constraining role of market categories and institutional logics ha

betrayal as market barrier identity based limits to diversification among high status corporate law firms1 why are some diversified market identities problematic but others are not we examine this question in the context of high status corporate law firms which often diversify into one low status area of work family law fl but face a barrier strong disapproval from existing clients that prevents diversification into another such area plaintiffs personal injury law pil drawing on a qualitative study of the boston legal market we argue that this barrier reflects a situation where loyalty norms have been violated and it surfaces because service to individual plaintiffs is tantamount to betraying the interests of corporate clients our analysis clarifies identity based limits to diversification indicating that they are rooted in concerns about the firm s commitments as well as its capabilities and suggests a more general refinement of theory on status and conformity

measures of technical efficiency abstract fare and lovell j econom theory 19 1978 150 162 suggest four properties that a measure of technical efficiency should satisfy the commonly employed debreu farrell measure fails three of them necessary and sufficient conditions for a measure to satisfy the four conditions are provided and recently proposed measures are analyzed in the light of this result also it is argued that the debreu farrell measure has several desirable properties when one takes account of 1 perhaps unknown market prices and the relationship between technical and economic efficiency and 2 its characterization as a measure of economic efficiency using the shadow prices implicit in the production technology

steady change the 200 largest us manufacturing firms throughout the 20th century this paper discusses the existence of structural change in business activity and technological competence among the 200 largest us manufacturing companies throughout the 20th century the data were taken from chandler scale and scope 1990 and fortune magazine the analysis of corporate evolution in used to assess continuity versus turbulence of business organizations in the context of the neo schumpeterian long wave hypothesis the empirical results show that the giants of the late 20th century are not the same as those at the beginning of that period persistence in the sample is very limited moreover turbulence is not smooth but rather occurs by impulses that affect specific industries and it has increased over time overall the pattern of corporate entry and industry development is very indicative of the new opportunities emerging with information and communication technologies this process of open ended continuous transformation supports the case for putting change at the centre of economic analysis

the liability of good reputation a study of product recalls in the u s automobile industry in this paper we explore opposing theoretical claims about how organizational reputation affects market reactions to product defects on the one hand good reputation could be a disadvantage because expectations about product quality are more likely to be violated by defects in highly reputed products on the other hand a good reputation could be an advantage because of strong inertial effects on reputation orderings we empirically test these competing hypotheses using data on product recalls in the u s automobile industry from 1975 to 1999 our results support for the idea that reputation can be an organizational liability in that highly reputed firms suffer more market penalty as a result of their product recalls we also propose that the reputational effects are moderated by two important factors substitutability and generalism specialism our results show that having few substitutes with an equivalent level of reputation or a focused product identity stemming from specialism buffers the negative market reactions to product recalls we conclude with a discussion on the implications of these results for institutional reputation and status theories