Density imprints and organizations' survival chances: A question of organisational ancestors

Abstract

While previous studies in organisational ecology have shown that the population density at the time of an organisation's founding influences its survival chances, the present study proposes that clarity regarding the form and function of a category of organisations moderates this effect. Focusing on four industries in East Germany and their development in the aftermath of the transition from socialism to a free market economy in 1990, results support prior findings (i.e., a high population density at an organisation's founding decreases its survival chances). However, this effect is less harmful when environmental experiences with the organisational form are small. The present study's results contribute to the recent discussion on population density, and they highlight the importance of transition economies as research contexts for organisational ecology. © Rainer Hampp Verlag.