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The Evolution of a New IndustryA Genealogical Approach$
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Israel Drori, Shmuel Ellis, and Zur Shapira

Print publication date: 2013

Print ISBN-13: 9780804772709

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804772709.001.0001

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A Framework for Genealogical Evolution

A Framework for Genealogical Evolution

(p.11) 2 A Framework for Genealogical Evolution
The Evolution of a New Industry
Stanford University Press

This chapter first presents theories that explain how entrepreneurs—founders of new firms—shape the prospects of others in doing the same. It also examines the propensities and know-how needed for creating a new business venture from the ground up. Next it outlines the various facets of the genealogical approach. The basic assumptions of the approach are as follows. First, the evolutionary paths of new ventures are influenced both by their conditions at founding and by the imprinting effects of the organizational characteristics that shaped the founding processes. Second, those characteristics are transmitted through generations. Such a claim implies that “offspring” inherit certain “genetic” characteristics of “parents.” It is proposed that the structure and characteristics of a genealogy and, ultimately, its size are affected by its particular line of heredity and affinity. The relations among founding firms and their progenies along different generations shape genealogical growth or potency, as measured by the number of newly spawned firms. The chapter concludes by contending that tracing genealogies from founding parents to their next generations provides a new understanding of how industries grow.

Keywords:   entrepreneurs, new business, genealogical approach, founding firms, industry

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