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TagOrganizational Ecology (book)

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Can Darwinian Theory Explain the Rise and Fall of Businesses?

The fashionable field of organizational ecology says yes — organizations are like animals in nature

When you think of “business,” do you think of stuffy suits and boring meetings? But maybe that’s just a pose. Organizational science studies what makes businesses survive, thrive and die. The description makes businesses sound more like living, vulnerable animals, doesn’t it? There is even a widely accepted subfield called organizational ecology, founded by Michael Hannan and John Freeman (1944–2008), which applies evolution theory to businesses. In 1989, Harvard University Press published their very influential book on the topic. Organizational ecology applies a specifically Darwinian form of evolution theory to businesses. That is, the main driving force of change for businesses is seen as natural selection. The “ecology” part of organizational ecology is the idea that the ever-changing business environment…