Boom and Bust: The Effect of Entrepreneurial Inertia on Organizational Populations

dc.contributor.author

Ruef, M

dc.contributor.editor

Baum, JAC

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Dobrev, SD

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VanWitteloostuijn, A

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2023-02-27T15:29:37Z

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2023-02-27T15:29:37Z

dc.date.issued

2006

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2023-02-27T15:29:35Z

dc.description.abstract

Although recent public attention has focused on boom-and-bust cycles in industries and financial markets, organizational theorists have made only limited contributions to our understanding of this issue. In this chapter, I argue that a distinctive strategic insight into the mechanisms generating boom-and-bust cycles arises from a focus on entrepreneurial inertia - the lag time exhibited by organizational founders or investors entering a market niche. While popular perceptions of boom-and-bust cycles emphasize the deleterious effect of hasty entrants or overvaluation, I suggest instead that slow, methodical entries into an organizational population or market may pose far greater threats to niche stability. This proposition is explored analytically, considering the development of U.S. medical schools since the mid-18th century. © 2006 Elsevier Ltd. All rights reserved.

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0742-3322

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https://hdl.handle.net/10161/26657

dc.language

English

dc.publisher

Emerald (MCB UP )

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Advances in Strategic Management

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10.1016/S0742-3322(06)23002-X

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Social Sciences

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Business

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Management

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Business & Economics

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DOMINANT DESIGNS

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SOCIAL-STRUCTURE

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IRON CAGE

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EVOLUTION

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DENSITY

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SELECTION

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DYNAMICS

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INDUSTRY

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ECOLOGY

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MODEL

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Boom and Bust: The Effect of Entrepreneurial Inertia on Organizational Populations

dc.type

Journal article

duke.contributor.orcid

Ruef, M|0000-0002-8134-1514

pubs.begin-page

29

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72

pubs.organisational-group

Duke

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Trinity College of Arts & Sciences

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Sociology

pubs.organisational-group

Institutes and Provost's Academic Units

pubs.organisational-group

Initiatives

pubs.organisational-group

Duke Innovation & Entrepreneurship

pubs.publication-status

Published

pubs.volume

23

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