The Organizers' Ecology: An Empirical Study of Foreign Banks in Shanghai

HKUST Business School Research Paper No. 07-10

Organization Science, Vol. 17, No. 3, pp. 385-401, May-June 2006

19 Pages Posted: 18 Jul 2007

See all articles by Jeroen Kuilman

Jeroen Kuilman

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization

Jiatao Li

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization

Abstract

The organizing stages that predate entry into an organizational population were studied from an ecological perspective. Based on ta detailed analysis of foreign banks in Shanghai, findings are presented that suggest that the likelihood of moving from the organizing phase to the operational phase to the operational stages is nonmonotonically dependent on the length of the waiting time. We found that firms seeking to gain entry into a population are negatively affected by the presence of the other organizers in close geographical proximity, while the number of already-established organizations has an inverted U-shaped relationshi with the aspirant's likelihood of entering a relationship that operates more broadly. After investigating the effect of the geographical location of other potential entrants, as well as the effect of relative sizes and countries of origin, we have drawn inferences about the strength of these competitors' identities and their impact on a social actor's decision to enter the population. Our findings are informative not only for those studying organizational founding patterns, but also for those interested in the early process of identity formation.

Keywords: pre-entry stages, organizational ecology, identity, organizational founding, mimetic entry

Suggested Citation

Kuilman, Jeroen and Li, Jiatao, The Organizers' Ecology: An Empirical Study of Foreign Banks in Shanghai. HKUST Business School Research Paper No. 07-10, Organization Science, Vol. 17, No. 3, pp. 385-401, May-June 2006, Available at SSRN: https://ssrn.com/abstract=1001401

Jeroen Kuilman (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization ( email )

Clear Water Bay, Kowloon
Hong Kong

Jiatao Li

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization ( email )

5473
Clear Water Bay, Kowloon
Hong Kong, PRC
852-2358 7757 (Phone)

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