Firm Survival and Industry Evolution in Vertically Related Populations

35 Pages Posted: 19 Nov 2011

See all articles by John M. de Figueiredo

John M. de Figueiredo

Duke University School of Law; Duke University - Fuqua School of Business; National Bureau of Economic Research (NBER); Duke Innovation & Entrepreneurship Initiative

Brian S. Silverman

University of Toronto - Rotman School of Management

Date Written: October 31, 2011

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.

Keywords: industry evolution, vertical relationship, vertical integration, density dependence, laser printer industry

JEL Classification: L22, L63, D23, O32

Suggested Citation

de Figueiredo, John M. and Silverman, Brian S., Firm Survival and Industry Evolution in Vertically Related Populations (October 31, 2011). Available at SSRN: https://ssrn.com/abstract=1961598 or http://dx.doi.org/10.2139/ssrn.1961598

John M. De Figueiredo

Duke University School of Law ( email )

210 Science Drive
Box 90362
Durham, NC 27708
United States

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative

215 Morris St., Suite 300
Durham, NC 27701
United States

Brian S. Silverman (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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