Demography of Corporations and Industries

Glenn R. Carroll is the Paul J. Cortese Distinguished Professor of Management at the Haas School of Business, University of California, Berkeley. Michael T. Hannan is the StrataCom Professor of Management and Professor of Sociology at Stanford University.

• List of Figures xi List of Tables xv Preface xix Acknowledgments xxvii Part I The Case for Corporate Demography 1 1 About Organizations 3 1.1 Aging and Learning 3 1.2 Inertia and Change 5 1.3 Competitive Intensity 7 1.4 Global Competition 9 1.5 Historical Efficiency 11 1.6 Employment and Entrepreneurship 12 1.7 A Look Ahead 14 2 The Demographic Perspective 17 2.1 Demography of Business Organizations 18 2.2 Organizing Principles of Demography 25 2.3 Formal Demography and Population Studies 26 2.4 Demographic Explanation 28 2.5 The Demography of the Work Force 31 2.6 Internal Organizational Demography 32 3 Toward a Corporate Demography 35 3.1 Earlier Efforts 36 3.2 Retaining the Classical Structure 39 3.3 Making Demography Organizational 40 3.4 A Research Strategy 56 4 Forms and Populations 59 4.1 Population versus Form 60 4.2 Identity and Form 67 4.3 Codes 68 4.4 Organizational Forms 73 4.5 Organizational Populations 74 4.6 Systems of Forms 76 4.7 Implications for Corporate Demography 78 Part II Methods of Corporate Demography 83 5 Observation Plans 85 5.1 Designs in Organizational Research 86 5.2 Trade-offs in Observation Plans 89 6 Analyzing Vital Rates 101 6.1 Event-History Designs 101 6.2 Stochastic-Process Models 110 6.3 Life-Table Estimation 117 6.4 Constant-Rate Models 127 7 Modeling Corporate Vital Rates 135 7.1 Duration Dependence 135 7.2 Dependence on Covariates 139 7.3 Note on Left Truncation 149 7.4 Comparing Designs by Simulation 150 7.5 Simulation Findings 155 8 Demographic Data Sources 163 8.1 Criteria for Evaluating Sources 164 8.2 Commonly Used Sources 167 8.3 Using Multiple Sources 185 8.4 Data Realities 188 Part III Population Processes 191 9 Organizational Environments 193 9.1 Telephone Companies 194 9.2 Modeling Environments 197 9.3 Environmental Imprinting 205 9.4 Imprinting in High-Tech Firms 207 10 Density-Dependent Processes I 213 10.1 Models of Population Growth 214 10.2 Corporate Density Dependence 216 10.3 Theory of Density Dependence 222 10.4 Interpreting Density Dependence 228 10.5 Weighted Density 232 10.6 Programmatic Issues 236 11 Density-Dependent Processes II 239 11.1 Density Delay 240 11.2 Population-Age Interactions 243 11.3 Size Interactions 251 11.4 Multilevel Processes 253 12 Segregating Processes 261 12.1 Resource Partitioning 262 12.2 Research on Partitioning 269 12.3 Size-Localized Competition 272 Part IV Organizational Processes 279 13 Age-Dependent Processes 281 13.1 Models of Age Dependence 282 13.2 Age-Related Liabilities 288 13.3 Age and Growth Rates 290 13.4 Theories of Age Dependence 291 13.5 Core Assumptions 296 13.6 Liabilities of Newness and Adolescence 301 13.7 Liability of Senescence 303 13.8 Alignment, Drift and Obsolescence 306 13.9 Liability of Obsolescence 309 14 Size Dependence 313 14.1 Size and Growth Rates 315 14.2 Age, Size, and Mortality 319 14.3 Automobile Manufacturers 322 14.4 Extending the Formalization 331 15 Initial Mobilizing 339 15.1 Organizing Activities 340 15.2 Theoretical Arguments 343 15.3 Automobile Preproducers 346 16 Organizational Transformation 357 16.1 Theory and Research 358 16.2 Structural Inertia 362 16.3 Transformation and Mortality 368 16.4 Innovation in Automobile Manufacturing 374 Appendix: A Property-Based Formalization of Inertia Theory 377 Part V Selected Implications 381 17 Organization Theory 383 17.1 Equilibrium Orientation 383 17.2 Alignment and Fitness 385 17.3 Adaptation and Selection 389 17.4 Speed and Efficiency of Change 393 17.5 Historical Efficiency and Competition 397 18 Regulation 401 18.1 Early Telephony 403 18.2 Interconnection Laws 404 18.3 The Kingsbury Commitment 406 18.4 Regulation and Deregulation in Banking 411 18.5 System Dynamics after Deregulation 414 18.6 Deregulation and Organizational Growth 418 19 Employment 423 19.1 Effects on Careers 424 19.2 Corporate Demography andjob Shifts 425 19.3 Job Creation and Dissolution 426 19.4 Corporate Demography and Individual Mobility 429 19.5 Employment Benefits and Social Welfare 432 19.6 Effects of Careers on Corporate Demography 437 20 Organizational Diversity 439 20.1 Beer and Wine Industries 440 20.2 Diversity, Careers, and Inequality 444 20.3 Toward a Community Ecology of Corporations 451 References 453 Index 481

"Destined to become the standard reference ... Caroll and Hannan admirably chronicle the first steps toward legitimizing organizational demography as a distinct specialist form."--David Knoke, American Journal of Sociology "This is one of the most scientific textbooks in the field... [It] serves as an (almost) ideal example for students and scholars alike, and it is highly relevant for nearly everybody interested in organizations, policy, management, strategy, and contingency. Students of modernity will also find much of interest."--Jeroen Bruggeman, Contemporary Sociology "The Demography of Corporations and Industries [is] ... the reference book on the subject."--Hallie J. Kintner, Population Studies "A compelling contribution that is destined to be a mandatory addition to the bookshelves of the beginner and the advanced scholar and a testament to the vigor and reach of the ecological program of research."--Hayagreeva Rao, Administrative Science Quarterly