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Institutional Embeddedness and the Dynamics of Organizational Populations

Joel A. C. Baum and Christine Oliver
American Sociological Review
Vol. 57, No. 4 (Aug., 1992), pp. 540-559
Stable URL: http://www.jstor.org/stable/2096100
Page Count: 20
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Institutional Embeddedness and the Dynamics of Organizational Populations
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Abstract

Population density--the number of organizations of a particular type--has been used to study the effects of legitimation and conception on rates of organizational founding and failure. We investigate the influence of population density and relational density--the number of ties between organizations and their institutional environment--on founding and failure rates in a population of day care centers. Findings suggest that embeddedness in the institutional environment underlies the legitimating effects of initial population growth and the improved survival capabilities of a population of organizations in the long run.

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