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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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Genealogies in the Making

Genealogies in the Making

The Process and Structure of Their Evolution

(p.81) 4 Genealogies in the Making
The Evolution of a New Industry
Stanford University Press

This chapter explores the formation of organizational genealogies of the information technology and communication (ITC) sector in Israel and its characteristics. In particular, it traces the evolutionary trajectory of each genealogy and its growth strategy. It shows how genealogies and their respective environments evolve and influence their growth. It also demonstrates how the conditions at founding influence the entrepreneurial tendencies of a genealogy's affiliates, and how the different institutional environments at founding shape entrepreneurial capabilities and the inclination to spawn progenies. The data show that certain genealogies prosper when pursuing innovation in line with the trajectory of change in their industry. Hence, the genealogical perspective presents the evolutionary dynamics that ultimately shaped the Israeli ITC sector—in both its embryonic and mature stages. The chapter also shows how the prospects of genealogical evolution are ascribed to the ex ante capabilities embedded in their founding environment.

Keywords:   Israel, information technology and communication sector, genealogies, founding environment, genealogical evolution

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