Organizational Ecology Essay

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Two important perspectives in the organizations literature have been prominent over the past several decades: organizational ecology and the new institutionalism. Ecology is often centered around the demography of organizations e.g. firm creation and mortality, while institutionalism seeks to explain organizational behavior based on the social and cultural construction of legitimacy. Ecology tends to explain the diversity of organizations we observe, institutionalism their resemblances (Lee, 2012). Despite these differences, organizational ecology and new institutionalism have much in common, as they both developed as challenges to rationalist approaches. The integration of these two traditions can be leveraged to develop valuable insights …show more content…

In particular, startups conform to a set of formalized, ritualistic practices in order to obtain venture capital (VC) funding during the “seed” phase. Almost paradoxically, new companies are regarded as a kernel of innovation and invention in the economy and yet they seem to emulate each others’ routines in the pursuit of early investment, decoupled from the actual products or services they plan to sell to the

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