"Michael T. Hannan, Stanford Graduate School of Business"

“A population ecology perspective on organization-environment relations is proposed as an alternative to the dominant adaptation perspective. The strength of inertial pressures on organizational structure suggests the application of models that depend on competition and selection in populations of organizations. Several such models, as well as issues arising in attempts to apply them to the organization-environment problem, are discussed.”

“Once standards of procedures and the allocation of tasks and authority become the subject of normative agreements, the cost of change greatly increased. Normative agreements constrain adaptation in at least two ways. First, they provide a justification and an organizing principle for those elements that wish to resist reorganization . Second, normative agreements preclude the serious consideration of many alternative responses.”

“We argue that in order to deal with the various inertial pressures the adaptation perspective must be supplemented with a selection orientation. We consider first two broad issues that are preliminary to ecological modelling. The first concerns appropriate units of analysis. Typical analyses of the relation of organizations to environments take the point of view of a single organization facing an environment.”

“The concept of "niche," initially borrowed by biologists from early social science, plays a central role in ecological theory... The niche... consists of all those combinations of resource levels at which the population can survive and reproduce itself.”

“For wide classes of organizations there are very strong inertial pressures on structure arising from both internal arrangements and from the environment . To claim otherwise is to ignore the most obvious feature of organizational life. Failing churches do not become retail stores nor do firms transform themselves into churches.”

“Legitimacy constraints also emanate from the environment. Any legitimacy an organization has been able to generate constitutes an asset in manipulating the environment. To the extent that adaptation violates the legitimacy claims, it incurs considerable costs. So external legitimacy considerations also tend to limit adaptation.”