Olav Sorenson and Pino G. Audia Nearly all industries exhibit geographic concentration. Most theories of the location of industry explain the persistence of these production centers as the result of economic efficiency. This article argues instead that heterogeneity in entrepreneurial opportunities, rather than differential performance, maintains geographic concentration. Entrepreneurs need exposure to existing organizations in [...]

Olav Sorenson Is starting a new business more difficult in an emerging industry or in a mature industry? The density dependent model of organizational ecology maintains that the industry’s age is irrelevant; the number of firms currently occupying the market niche determines the industry’s competitive structure. Nevertheless, population-level learning predicts historical asymmetry in entry barriers. [...]

Olav Sorenson Managers must choose to allocate scarce resources either to the maintenance of a range of products tailored to heterogeneous consumer preferences or to the efficient production of a small number of products. In addition, managers must choose the degree to which they periodically cull the product line. Vigorous selection removes poor performers from the product line, [...]