In the last blog, we looked at the Resource Dependency Theory of relation between organization and environment. In today's blog we will into another theory - Population Ecology theory.
Similar to the Resource dependency theory, the Population Ecology theory too starts with assumption that organizations depend on their environment for the resources they need to operate.
The population ecology assumes that the environment of an organization is assumed to have the power to select from a group of competitors those organizations which best serve the needs. Organizations which share a resource pool are competitively interdependent and the patters of interdependence that they adopt within the group affect the survival and prosperity of individual members.
The main interest of the theory to explain the evolutionary process of the organization. There are 3 evolutionary processes - variation, selection and retention - which explain the dynamics of a population.
Variation occurs in a population through entrepreneurial innovation and through the adaptation of established organizations.
The new organizations that are formed through birth or adaptation provide the range of choice the environment has during the selection process.
Environment sélects on the basis of fitness - the survival. Retention equals survival.
This model provides a more detached view of the organizations than they are normally used to taking.
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