This paper examines founding rates of commercial banking organizations in Denmark between 1846 and 1989 with two main analytical objectives.
Descriptors: organizational ecology, organizational founding rates, density dependence, spatial heterogeneity, banks
In response to the ren ewed interest in spatial processes, the basic model of density dependence in organizational founding rates has been modified to take into account the fact that organizational populations evolve simultaneously at multiple scales and across different geographical boundaries (Hannan et al.
Delacroix and Solt (1988: 54) argued that foundings in the California wine industry are driven by a niche formation process.
Increases in the level of wine imports have a strong positive effect on foundings in the California wine industry.
The impact of such legislation is evident in the sudden increase in farm winery foundings in the 1970s and 1980s, as shown earlier in Figure 2.
The effect of prior foundings on the subsequent founding rates in a given population is expected to be curvilinear.
While other empirical research reports a monotonic effect of prior foundings on founding rates, Delacroix and Solt (1988) found a strong positive effect of prior foundings in the California wine industry.
Figure 2 shows that there were few foundings during the early and late portions of this population's history and great variation from year to year during the middle portion.
This source reports yearly counts of density and number of foundings for the entire national population of life insurance companies for the period 1759 through 1937.
This reasoning leads to the following hypothesis: Hypothesis 3: Organizations with poor performance since founding will exhibit greater change in patterns of functional importance established at founding.
These measures are used to assess both founding and current functional importance.