Evolutionary approach to organizations

9 important questions on Evolutionary approach to organizations

3 core topics of SET (3)

1 How is economic activity coordinated?
2 What explains input and output prices?
3 How to understand the dynamics?

Evolutionary biology and 2 approaches

explains firms' lifecycle
1 population ecology (industry level of analysis)
2 theory of evolution (firm level of analysis)

Population def and 3 key concepts

sum of all members, group or species, live in same area, can interbreed
share same resources, transmit characteristics to offspring

1 carrying capacity of environment
2 population density
3 niche partitioning
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Theory of evolution (darwin) (3)

variation of species
selection (survival of the fittest) 
retention (offspring)
VSR principle

based on idea of cumulative natural selection

Lamarkian theory of evolution

endogenous adaptation to environment (giraffe's neck stretch to tree)

What curve for carrying capacity?

as population density increases, birth rate decreases (inverted U curve) death reate, increases (U curve)

Niche partitioning 3 stages

1 emergence phase: (new firms with competitive technologies)
2 transition phase: fittest survives, dominant technology
3 maturity phase: specialists grow

New product development (introduce in 3 ways)

internal development
joint development
licensing

Cost and benefit of routine

routine generates performance
routince creates organizational inertia (difficult adapt changes)

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