Document Type

Article

Publication Date

2011

Keywords

organizational ecology, vertical integration, empirical research, industry evolution

Subject Category

Law | Organizational Behavior and Theory

Abstract

This paper examines how the density and governance of vertically related populations affect the life chances of organizations. We integrate the literatures on organizational ecology and vertical integration to develop a theory of how 1) specialized upstream industries affect downstream survival rates 2) the prevalence of different governance forms among upstream and downstream organizations moderates this relationship, and 3) different forms of governance exert differential competitive pressures on focal organizations. We find evidence supporting our hypotheses in an empirical examination of the downstream laser printer industry and upstream laser engine industry.