Lecture 8 (Evolutionary theory) Flashcards

1
Q

Two evolutionary approaches

A

-Population ecology > Oranizational ecology > industry level

-Theory of evolution > evolutionary economics > firm level

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2
Q

Population ecology 3 main concepts

A
  1. Carrying capacity
  2. Niche partitioning
  3. Inertia
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3
Q

Carrying capacity meaning

A

Maximum load of firms given the scarce resources

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4
Q

Niche partitioning meaning

A

The environment is shared in various areas to give room for all
members, which are selected by natural selection

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5
Q

Inertia meaning

A

Evolution from generalists to specialists, it is slow, difficult, and often
unsuccessful

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6
Q

Theory of evolution focus

A

Focus on genes which evolve over time and are selected out by the environment or transmitted to
offspring

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7
Q

VSR principle

A

Variation of a given species
Selection of the fittest variants
Retention of heredity (features retained and passed on)

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8
Q

Evolutionary economics focus

A

focuses on firm evolution, drawing upon assumptions made by the Behavioural Theory of the Firm. It explains this evolution by applying the VSR principle

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9
Q

Evolutionary economics assumptions

A

-Incomplete information
-Bounded rationality
-Satisfying rather than optimizing

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10
Q

Two types of searches:

A

-Exploitation - firms refine existing processes

-Exploration - firms try out new ideas

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11
Q

Organizational Ambidexterity meaning

A

Balance between exploitation and exploration, they must co-exist

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12
Q

Factors driving variation in theory of evolution

A

-prior routines
-information available & bounded rationality
-satisfying rather than optimizing

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13
Q

selection meaning in theory of evolution

A

misfit firms go bankrupt

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14
Q

retention or inheritance meaning in theory of evolution

A

today’s choices are rooted in past choices

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15
Q

Lamarchian explanation of evolutionary theory

A

the inheritance of acquired
characteristics and the principle of use and disuse (those parts of a body that are used grow larger. Those parts that are not used tend to wither away)

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16
Q

Darwinian explanation of evolutionary theory

A

cumulative natural selection, variations, selection, retention

17
Q

legitimation meaning

A

Social ‘acceptance’ of the organizational form

18
Q

Tacit knowledge

A

Knowledge gained through personal experience

19
Q

Truce meaning

A

Agreement between enemies/opponents to stop fighting over smth

20
Q

Dynamic capabilities of organization meaning

A

the capacity of an organization purposefully to create, extend or modify its resource base

21
Q

Operational capabilities of an organization meaning

A

the ability to align critical processes, resources, and technologies according to the overall guiding vision

22
Q

External fitness meaning

A

The match between organizational and environmental characteristics

23
Q

Evolutionary fitness meaning

A

how well a dynamic capability enables an organization to make a living by creating, extending or modifying its resource base

24
Q

Technical fitness

A

How effectively a capability performs its intended function when divided by its costs.

(quality per unit of cost)

25
Icarus paradox
Large firms finding it hard to adapt
26
Organizational ecology - where it derived from, unit of analysis?
Derived from population ecology Unit of analysis - industry and population of firms
27
Niche partitioning phases
Emergence phase Transition phase Maturity phase
28
Emergence phase in niche partitioning meaning
new generalist firms enter with competetive technologies
29
Transition phase in niche partitioning meaning
selection of the fittest firms
30
Maturity phase in niche partitioning meaning
a few “specialist” firms may sustainibly grow
31
Evolutionary economics - where it derived from, unit of analysis?
Derived from theory of Evolution Unit of analysis - industry, but derived from firm-level data
32
Variation meaning
firms alter their routins due to environmental challenges
33