Empiriceme · Model · Theory / Model

Hannan–Freeman Organizational Ecology

Forms survive via environmental selection; inertia is high.

Hannan and Freeman's 1977 argument that organisations change mainly by being replaced. Inertia is not a defect but a byproduct of the reliability that let them survive in the first place.

In practice

  • A newspaper that dominated print does not become a digital newspaper; a different organisation does, and the first one closes.
  • A high street chain restructures four times and is replaced by an entrant that never had the estate to restructure.
Subject
Organizations & Bureaucracy
Essay
Why organisations learn, harden and decline

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