A genealogical approach to organizational life chances: the parent-progeny transfer among Silicon Valley law firms, 1946-1996.

From: Administrative Science Quarterly | Date: September 1, 2002| Author: | Copyright information

Data on Silicon Valley law firms over a 50-year period were used to study the genealogy of organizational populations and its consequences for organizational life chances when a member of an existing firm leaves to found a new firm. Hypotheses and subsequent analysis suggest that the transfer of resources and routines between a parent organization and its progeny decreases life chances for the parent firm and increases life chances for the progeny. The results are contingent on the founder's previous position in the parent firm and time since the parenting event. In addition, I ... 

<.05 level. 
 
Table 3 
 
Maximum Likelihood Estimates of Silicon Valley Law Firm Failure, 
1946-1996 # 
 
Variable                                (1)         (2)         (3) 
 
Age: 0-6 years                       -5.76       -6.07       -5.95 
                                     (1.23)      (1.23)      (1.24) 
Age: 6-10 years                      -5.94       -6.26       -6.13 
                                     (1.24)      (1.24)      (1.24) 
Age: 10-21 years                     -6.42       -6.77       -6.70 
                                     (1.24)      (1.24)      (1.25) 
Age: 21+ years                       -6.20       -6.58       -6.45 
                                     (1.25)      (1.26)      (1.27) 
Log(density)                          0.77 **     0.82 **     0.80 ** 
                                     (0.27)      (0.27)      (0.27) 
Log(partners)                        -0.49 **    -0.20       -0.21 
                                     (0.13)      (0.13)      (0.14) 
Log(associates)                      -0.41 **    -0.13       -0.14 
                                     (0.10)      (0.11)      (0.11) 
Very small firm                       0.33 **     0.36 **     0.33 ** 
                                     (0.15)      (0.16)      (0.16) 
Relative scope                        6.80 **     6.79 **     6.89 ** 
                                     (2.50)      (2.50)      (2.54) 
[(Relative scope).sup.2]            -17.97 **   -18.03 **   -19.69 ** 
                                     (7.36)      (7.31)      (7.55) 
SF branch                             0.39 **     0.45 **     0.48 ** 
                                     (0.20)      (0.20)      (0.20) 
Non-SF branch                         0.38 **     0.33 *      0.29 
                                     (0.18)      (0.18)      (0.19) 
Personal plight                      -0.10       -0.09       -0.08 
                                     (0.16)      (0.16)      (0.16) 
Mean founder age                      0.02 *      0.01        0.01 
                                     (0.01)      (0.01)      (0.01) 
S.d. of founder age                  -0.01       -0.00       -0.00 
                                     (0.01)      (0.01)      (0.01) 
Name partner attrition                0.70        2.96 **     3.79 ** 
                                     (0.44)      (1.00)      (1.18) 
Name-partner attr. x log(part.)                  -1.64 *     -2.76 ** 
                                                 (0.87)      (1.13) 
Name-partner attr. x log(assoc.)                 -1.97 *     -3.23 ** 
                                                 (1.11)      (1.38) 
Regular-partner attrition            -2.33 **    -4.51 **    -4.15 * 
                                     (0.92)      (2.28)      (2.20) 
Regular-partner attrition x log                  -0.80       -1.01 
 (part.) 
                                                 (1.06)      (1.07) 
Regular-partner attrition x log                   3.98 **     3.90 ** 
 (assoc.) 
                                                 (1.31)      (1.28) 
Associate attrition                  -0.40        3.28 **     3.87 ** 
                                     (0.27)      (0.89)      (0.99) 
Associate attr. x log(part.)                     -2.30 **    -2.41 ** 
                                                 (0.75)      (0.78) 
Associate attr. x log(assoc.)                    -3.61 **    -4.42 ** 
                                                 (1.22)      (1.36) 
Name-partner parenting rate                                   6.25 ** 
                                                             (1.30) 
Partner parenting rate                                        3.75 * 
                                                             (2.25) 
Associate parenting rate                                    -17.07 ** 
                                                             (5.81) 
Associate parenting rate x log                               13.61 ** 
 (assoc.) 
                                                             (3.52) 
Par.-progeny similarity .00-.25 
 
Par.-progeny similarity>

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