Journal Article

Recruitment-based competition between industries: a community ecology

Jesper B. Sørensen

in Industrial and Corporate Change

Volume 13, issue 1, pages 149-170
Published in print February 2004 | ISSN: 0960-6491
Published online February 2004 | e-ISSN: 1464-3650 | DOI: https://dx.doi.org/10.1093/icc/13.1.149
Recruitment-based competition between industries: a community ecology

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  • Industrial History
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Because entrepreneurs often must recruit labor in order to launch their ventures, the labor market is a potential source of constraint in the entrepreneurial process. Moreover, competition in the labor market likely does not end at the boundaries of the product market, as industries overlap in their needs for labor. I use an organizational ecology framework to examine how founding rates in an industry vary with the degree of competition with other industries for labor, and thereby provides evidence of recruitment-based competition between industries in a community ecology. The extent of recruitment-based overlap between industries is inferred from data on flows of employees within and between industries. Analyses of founding rates in eighty-four industries in Denmark over the period 1980–1991 suggest that new firms are less likely to appear in industries that occupy crowded regions of the labor market.

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Subjects: Industrial History ; Business History ; Innovation ; Technological Change; Research and Development ; Industry Studies

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