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| Author: | Harrison, J.R. |
| Title: | Models of growth in organizational ecology: a simulation assessment |
| Journal: | Industrial and Corporate Change
2004 : FEB, VOL. 13:1, p. 243-261 |
| Index terms: | Organizations Growth Models |
| Language: | eng |
| Abstract: | Organizational ecologists investigate the dynamics of organizational populations. Using computer simulation analysis, this paper examines four models for organizational (hereafter as: org.) growth: i. Gibrat's law, a proportional growth model, ii. an extension of Gibrat's law incl. density and age effects on growth, iii. a Schumpeterian growth model based on R&D investment, and iv. a demographic growth model based on Poisson processes for the arrival and departure of individuals. The simulation findings are compared with empirical observations, and the implications of the findings for modeling org. growth are discussed. In particular, it is argued in the study that it is unlikely that 'one growth model fits all', and it is suggested that separate growth models need to be developed for different industrial and org. contexts. |
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