Population Ecology

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Population Ecology

Take the theory of Darwinism and apply in business you will get the theory of Population Ecology in business. Population Ecology was merged in the seventies and founded by Michael Hnnan and John Freeman. Borrowed from biology, it is the process of natural selection in business and organizations with the favorable traits are more likely to survive, which means that organizations depend on the environment to survive. Luck, chance, and randomness play an important role in explaining the survival or failure of an organization. This theory examines the birth and death of companies, add with that growth and change of organizations. The organizations that are most adaptable to change are the ones that will survive best, since this theory suggests that the environment does the selection and organizations have no say in it. The fundamental unit of analysis is the population, which consists of firms with similar forms. Those firms are competitive in nature.

There are five sub theories to population ecology: Inertia and change, suggests that the organization most reliable and accountable are the ones that survive. However when change occurs, they become resistant to change. Given the restrictions on organization-level adaptation, most of these broader changes come from the entry of newly founded organizations and choosing a replacement of unfit organizations. Hence, scholars in the organizational theory field have spent considerable effort on understanding the effects of inertia and change on the mortality rates of organizations. Then second sub theory is Niche theory, it distinguishes between generalists and specialists. It suggests that specialization is favorable in stable environment however generalists are not always preferable in unstable environment but it reduces risk. Third sub theory is resource partitioning as it further explains specialists and generalists and their relationship. It includes predictions about the...
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