Impact of age dependence, niche width, and resource partitioning on organisational ecology in the field of Venture Capital Industry

This paper analyzes the impact of age dependence, niche market and resource partitioning on organizational ecology in the field of venture capital industry. It explores the theoretical aspects of the organizational ecology with the special reference of Venture Capital Industry.

Running head: COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
Impact of age dependence, niche width, and resource partitioning on organisational ecology in
the field of Venture Capital Industry
Name of the Student:
Name of the University:
Author Note:

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
Table of Contents
1. Introduction..................................................................................................................................2
1.1. Background...............................................................................................................................2
1.2. Research Aim............................................................................................................................3
1.3. Research Objectives..................................................................................................................3
1.4. Research Questions...................................................................................................................3
1.5. Research Hypotheses................................................................................................................4
2.0 Literature Review......................................................................................................................5
2.1 Age dependence: Concept and Theory......................................................................................5
2.2 Niche Width: Concept and Theory............................................................................................7
2.3 Resource Partitioning: Concept and Theory..............................................................................8
2.4 Linking between the variables...................................................................................................9
2.5 Gap in the literature.................................................................................................................10
2.6 Summary..................................................................................................................................10
3.0 Research Methodology............................................................................................................11
4. Expected Outcomes...................................................................................................................12
References......................................................................................................................................14

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
1. Introduction
1.1. Background
The paper will explain the relationship among the dependent, independent and control variable
variables in analyzing the competitive strategies and organizational forces within venture capital
industry.1 Considering the same, the research will focus on analyzing the impact of age
dependence, niche market and resource partitioning on organizational ecology in the field
venture capital industry. In revising the organization ecological theory of competition and
legitimating, it was theorized that the anticipated legitimating level of a class grows
monotonically in contrast the population rather than density. This is deemed to affect empirical
predication needs empirical confirmation.2 The revised theory of resource portioning indicates
that it matters whether the analyzed structural change is the initiating change within a cascade or
simply within a sequence of longer sequence. Within consideration to organization ecology
theory, focus has been out on the allocation principle in order to attain useful implications. Such
principle, expenditures engagement is just one aspect of the niche decreases the possibilities of
engagement within other factors.3 Implementation of such principle leads to arguing that multiple
1 Felin, Teppo, Nicolai J. Foss, and Robert E. Ployhart. "The microfoundations movement in strategy and
organization theory." The Academy of Management Annals 9.1 (2015): 575-632.
2 Greenwood, Royston, et al., eds. The Sage handbook of organizational institutionalism. Sage, 2017.
3 Greve, Henrich R., and Cyndi Man Zhang. "Institutional logics and power sources: Merger and acquisition
decisions." Academy of Management Journal 60.2 (2017): 671-694.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
category membership decresaes competitive viability and strength. The revised resource
partitioning theory is observed for more detailed guidance on empirical testing.
1.2. Research Aim
The aim of the research is to analyze the impact of age dependence, niche market and resource
partitioning on organizational ecology in the field venture capital industry.
1.3. Research Objectives
The research objectives that are to e addressed in this research are explained under:
 To analyze the effect of the independent variables such as age dependence, niche market
and resource partitioning on the dependent variable that is organizational ecology
 To evaluate the control variable (venture capital industry) impacts the dependent and
independent variables in organization theory logics
 To analyze three major theoretical aspects of the organization ecology in the selected
population.
1.4. Research Questions
The research question that will be answered through completion of the research is:
 What is the effect of the independent variables such as age dependence, niche market and
resource partitioning on the dependent variable that is organizational ecology?
 How the control variable (venture capital industry) impacts the dependent and
independent variables in organization theory logics?

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
1.5. Research Hypotheses
The research hypotheses that are to be tested in accomplishing the research on theoretical aspects
of organization ecology are explained below:
 H1: Age dependence has a positive impact on determining the organization ecology
within the venture capital industry.
 H2: Niche market has a positive impact on determining the organization ecology within
the venture capital industry.
 H3: Resource partitioning has a positive impact on determining the organization ecology
within the venture capital industry.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
2.0 Literature Review
Venture Capital industry signifies the financial intermediation form that provides funding
for strengthening the competitive position of the company. It depends on various segments for
shaping the competitive advantage in a more advanced way. Organisational ecology signifies the
important approaches associated in the sociological aspects4. It is mainly concerned with the
emerging competition among the organisations in terms of developing the relationship to the
market foundation. The literature study would explore the theoretical aspects of the
organisational ecology with the special reference of Venture Capital Industry. The linking
between the dependable variable, independent variable, and control variable would be discussed
in this section of the study. Obtained information would thus provide the enriched ideas
regarding the entire research plan.
2.1 Age dependence: Concept and Theory
Ecological study is widely concentrating on the structural arrangements and the pattern of
the employees’ performance level. It seeks interference by developing the understanding about
the initial condition and the observable organisational shifts that have altered the organisational
landscape much significantly5. The precision of the ecology model concentrates on the
measurement of accepting the relevant techniques to manage competitiveness. The age
dependence in organisational ecology determines the time scale of operating in a market and deal
with the business functions to develop competitive advantage. The integrating theory of age
4 Lazzeretti, L., and Capone, F. (2017). The transformation of the Prato industrial district: an organisational
ecology analysis of the co-evolution of Italian and Chinese firms. The Annals of Regional Science, 58(1), 135-158.
5 Yu, Z. (2016). The effects of resources, political opportunities and organisational ecology on the growth
trajectories of AIDS NGOs in China. VOLUNTAS: International Journal of Voluntary and Nonprofit
Organizations, 27(5), 2252-2273.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
dependence offers the four diverse explanations for obtaining knowledge about the vulnerability
of young organisations6. It has been explained that the new organisations usually lack the
necessary social and technical skills that help in building up the smoother organisational
functioning. On the contrary, it was defined that the members associated with the old
organisations have the potentiality to learn the required skills and establish the loyalty within the
organisation. They are already aware of the things that are needed to be done instead of waiting
for the exact ways shown by the leaders7. On the other hand, the new organisations depend on
the direction provided by the leaders to perform the organisational functionalities that can lead
towards success.
Another argument defines that organisations must look forward to invent relationships
between roles, sanctions, and structure of the rewards. The organisations cannot function reliably
if there is the gap identified in the development of such relationships. It is thus necessary for the
new organisations to understand the appropriate operational process to achieve competitive
advantage. It has been argued that in order to develop the social relations, the new organisations
usually tend to involve the strangers8. In such regards, it has been observed that one cannot
become sure whether the jobs will be completed within the stipulated time, budget, and
according to the specifications. Moreover, the new organisations become more uncertain and
vulnerable than the old ones. The final argument is concerning the embedded aspects. It is
6 Berka, A. L., Harnmeijer, J., Roberts, D., Phimister, E., and Msika, J. (2017). A comparative analysis of
the costs of onshore wind energy: Is there a case for community-specific policy support?. Energy Policy, 106, 394-
403.
7 Adegbite, O. E., Simintiras, A. C., Dwivedi, Y. K., and Ifie, K. (2018). Organisational Concepts and
Theories of Adaptation. In Organisational Adaptations (pp. 27-48). Springer, Cham.
8 Bogaert, S., Boone, C., Negro, G., and van Witteloostuijn, A. (2016). Organizational form emergence: a
meta-analysis of the ecological theory of legitimation. Journal of Management, 42(5), 1344-1373.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
noticeable that the organisations often lack the social bonding with the external constituencies. It
thus becomes harder to mobilize the resources and ward of attacks in the competitive scenario.
2.2 Niche Width: Concept and Theory
According to previous research, the conceptual analysis of the niche market is one of the
most valuable aspects that specify environmental dependencies and competitive processes in a
significant manner. The differences identified in the conceptual analysis would provide the
clarified guidelines of the concept based on the empirical studies. The Niche Theory is generally
focusing on the fundamental niches that are introduced as the region of a resource space in which
an organisation can develop the operational functions event when the competition is absent9. It is
notified that that the fundamental niches have the capability of tracing the fits between the
organisation and the operating market. Choice of focus contributes much significantly in the
realised or fundamental niches. There is some of the considerable reasoning about the empty
intersection that might occur. First, it is noticeable that the underlying fundamental niches are
free from intersection whereas the second defines that the fundamental niches can overlap10.
However, in such cases, it has been observed that the intense competition between the two
organisations can produce partitioning11. There is not discrimination identified between the polar
cases.
9 Weber, M. S., Fulk, J., and Monge, P. (2016). The emergence and evolution of social networking sites as
an organizational form. Management Communication Quarterly, 30(3), 305-332.
10 TeBlunthuis, N., Shaw, A., and Hill, B. M. (2017, February). Density Dependence Without Resource
Partitioning: Population Ecology on Change. org. In Companion of the 2017 ACM Conference on Computer
Supported Cooperative Work and Social Computing (pp. 323-326).
11 Bertoni, F., Colombo, M. G., and Quas, A. (2017). The role of governmental venture capital in the
venture capital ecosystem: an organizational ecology perspective. Entrepreneurship Theory and Practice,
1042258717735303.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
2.3 Resource Partitioning: Concept and Theory
Resource partitioning in the organisational ecology is aligned with the niche theory.
However, the linking between these two theories is still unsettled. Nonetheless, it is noticed that
both lines of theory building explicitly on the broader concept of niche market. It generally
defines the specialism to develop the diverse assumptions based on the possible tradeoffs
between the breadth of adaptive capacity and peak fitness12. It is opined that resource partitioning
theory indicates that the generalists might receive the considerable benefits from the multiple
activities only when they achieve the larger scale. It is noticeable that such scale economies
could become strong enough to outweigh any of the overhead costs that have the broader niche.
It provides the overall advantage to the generalist organisations. The researches based on the
resource portioning theory are mostly depending on the realised niche market. It is notified that
the larger organisations generally have the larger realised niche in compare to the smaller
organisations with the similar fundamental niche if the strong advantages are provided in an
operating market13. The resource partitioning theory is usually paying attention towards the
changes associated with the realised niches. It is observed that the formalization of the resource
partitioning depends on the four specific properties, such as scale advantage, a partition of the
market into a center, a market center, and crowding14. The scale advantage suggests the returns
to some of the activities that grow with the scale to the extent it are done. On the other hand, the
market center determines the presence of the market center. Market center is associated with the
12 Péli, G. (2016). Population adaptation with newcomers and incumbents: The effects of the organizational
niche. Industrial and Corporate Change, 26(1), 103-124.
13 Getz, D., and Andersson, T. (2016). Analyzing whole populations of festivals and events: An application
of organizational ecology. Journal of Policy Research in Tourism, Leisure and Events, 8(3), 249-273.
14 Josefy, M., Kuban, S., Ireland, R. D., and Hitt, M. A. (2015). All things great and small: Organizational
size, boundaries of the firm, and a changing environment. The Academy of Management Annals, 9(1), 715-802.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
model of partitioning that concerns with the linkage between the centers and the fates of the
organisation within its margin. The development of the considerable dynamics would thus help
an organisation to develop the clear focus regarding the resource partitioning.
2.4 Linking between the variables
The study focuses on the impact of age dependence, niche width, and resource
partitioning on the organisational ecology in the venture capital industry. The dependable
variable is organisational ecology, which is influenced by the independent variables, such as
resource partitioning, age dependence, and niche width. The control variable is the Venture
Capital industry within which the organisations would establish the business functionalities. The
precision of the ecology model concentrates on the measurement of accepting the relevant
techniques to manage competitiveness15. The age dependence in organisational ecology
determines the time scale of operating in a market and deal with the business functions to
develop competitive advantage. It has been observed that one cannot become sure whether the
jobs will be completed within the stipulated time, budget, and according to the specifications16.
Moreover, the new organisations become more uncertain and vulnerable than the old ones.
Therefore, it has been observed that the underlying variables in this research plan have the
linking with each other.
15 Russell, J. L., Meredith, J., Childs, J., Stein, M. K., and Prine, D. W. (2015). Designing inter-
organizational networks to implement education reform: An analysis of state race to the top
applications. Educational evaluation and policy analysis, 37(1), 92-112.
16 TeBlunthuis, N., Shaw, A., and Hill, B. M. (2017, February). Density Dependence Without Resource
Partitioning: Population Ecology on Change. org. In Companion of the 2017 ACM Conference on Computer
Supported Cooperative Work and Social Computing (pp. 323-326). ACM.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
2.5 Gap in the literature
The literature study aims to focus on the conceptual and theoretical analysis of the
specific elements of organisational ecology. The complete analysis of the segmentations provides
the understanding of the subject area more specifically. However, it has been observed that this
particular scientific research requires the development of the scientific techniques and
mathematic formulation to analyse the subject in a clarified manner. On the other hand, the
updated formula of analyzing the subject matter is also a considerable gap identified in the
literature section. The precision of the ecology model concentrates on the measurement of
accepting the relevant techniques to manage competitiveness. The age dependence in
organisational ecology determines the time scale of operating in a market and deal with the
business functions to develop competitive advantage. The lack of in-depth analysis is the most
observable gap in this literature.
2.6 Summary
The chapter develops the clear linking between the dependable, independent, and
controllable variables. Organisational ecology signifies the important approaches associated in
the sociological aspects. It is mainly concerned with the emerging competition among the
organisations in terms of developing the relationship to the market foundation. The organisations
cannot function reliably if there is the gap identified in the development of such relationships. It
is thus necessary for the new organisations to understand the appropriate operational process to
achieve competitive advantage. The development of the understanding related to these subject
areas would be applied to the further study.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
3.0 Research Methodology
In carrying out research on investigating the three major theoretical aspects of the
organization ecology, suitable secondary research methodology will be selected. Secondary data
regarding the topic will be gathered from authentic government websites along with journals.17
Primary data regarding the subject will be gathered through employing research survey method.
Descriptive research design will be employed in this research for the reason that this can
facilitate in developing a list of recommendations for decreasing the problems at the
accomplishment of the research. Both the quantitative and quantitative data will be gathered for
attaining authentic human perception regarding the research variables. 11 managers from the
organization belonging to venture capital industry will be selected to answer the survey
questions. Simple random sampling process is employed in gathering the sample size as this
method offers equal chance for all the participants to get selected from the sample population.18
The survey questions will consider attaining viewpoint on the ways in which the three
independent variables such as age dependence, niche market and resource partitioning has an
impact on the dependent variable that is organizational ecology within in Venture capital
industry. Certain ethical considerations will also followed in conducting survey with the selected
managers.19 It will be made sure that the information gathered from the managers will be kept
confidential and the research will be the sole work of the research. In order to gather effective
outcome and findings from the research MS Excel will be employed. In analyzing the data,
17 Lounsbury, Michael, and Christine M. Beckman. "Celebrating organization theory." Journal of Management
Studies 52.2 (2015): 288-308.
18 Ocasio, William, Jeffrey Loewenstein, and Amit Nigam. "How streams of communication reproduce and change
institutional logics: The role of categories." Academy of Management Review 40.1 (2015): 28-48.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
correlation and regression analysis will be carried out. Regression analysis will facilitate in
testing the hypothesis in the research and for revealing the relationship between independent,
dependent and control variables.20
4. Expected Outcomes
After accomplishing the research, the expected outcomes of investigating the three major
theoretical aspects of the organization ecology in the selected population are gathered. The
research will reveal that the interpretation of an ascendant clause that is not problematic along
with considering the rest of the proposition.21 It will also be revealed from the research that there
are three types of theories of age dependence related with the mortality hazards. The research
will also offer reveal implications regarding integrate the age dependence within a theory of
nonmonomotonic reasoning. This can apparently conduct a good job of fitting within the
empirical patterns reported for arguments applied within organization’s life course phases.22
19 Lewis, Sarah. "Qualitative inquiry and research design: Choosing among five approaches." Health promotion
practice16.4 (2015): 473-475.
20 Mackey, Alison, and Susan M. Gass. Second language research: Methodology and design. Routledge, 2015.
21 Taylor, Steven J., Robert Bogdan, and Marjorie DeVault. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons, 2015.
22 Lewis, Sarah. "Qualitative inquiry and research design: Choosing among five
approaches." Health promotion practice16.4 (2015): 473-475.

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COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
References
Adegbite, O. E., Simintiras, A. C., Dwivedi, Y. K., and Ifie, K. (2018). Organisational Concepts
and Theories of Adaptation. In Organisational Adaptations (pp. 27-48). Springer, Cham.
Berka, A. L., Harnmeijer, J., Roberts, D., Phimister, E., and Msika, J. (2017). A comparative
analysis of the costs of onshore wind energy: Is there a case for community-specific policy
support?. Energy Policy, 106, 394-403.
Bertoni, F., Colombo, M. G., and Quas, A. (2017). The role of governmental venture capital in
the venture capital ecosystem: an organizational ecology perspective. Entrepreneurship Theory
and Practice, 1042258717735303.
Bogaert, S., Boone, C., Negro, G., and van Witteloostuijn, A. (2016). Organizational form
emergence: a meta-analysis of the ecological theory of legitimation. Journal of
Management, 42(5), 1344-1373.
Felin, Teppo, Nicolai J. Foss, and Robert E. Ployhart. "The microfoundations movement in
strategy and organization theory." The Academy of Management Annals 9.1 (2015): 575-632.
Getz, D., and Andersson, T. (2016). Analyzing whole populations of festivals and events: An
application of organizational ecology. Journal of Policy Research in Tourism, Leisure and
Events, 8(3), 249-273.
Greenwood, Royston, et al., eds. The Sage handbook of organizational institutionalism. Sage,
2017.

14
COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
Greve, Henrich R., and Cyndi Man Zhang. "Institutional logics and power sources: Merger and
acquisition decisions." Academy of Management Journal 60.2 (2017): 671-694.
Josefy, M., Kuban, S., Ireland, R. D., and Hitt, M. A. (2015). All things great and small:
Organizational size, boundaries of the firm, and a changing environment. The Academy of
Management Annals, 9(1), 715-802.
Lazzeretti, L., and Capone, F. (2017). The transformation of the Prato industrial district: an
organisational ecology analysis of the co-evolution of Italian and Chinese firms. The Annals of
Regional Science, 58(1), 135-158.
Lewis, Sarah. "Qualitative inquiry and research design: Choosing among five
approaches." Health promotion practice16.4 (2015): 473-475.
Lounsbury, Michael, and Christine M. Beckman. "Celebrating organization theory." Journal of
Management Studies 52.2 (2015): 288-308.
Mackey, Alison, and Susan M. Gass. Second language research: Methodology and design.
Routledge, 2015.
Ocasio, William, Jeffrey Loewenstein, and Amit Nigam. "How streams of communication
reproduce and change institutional logics: The role of categories." Academy of Management
Review 40.1 (2015): 28-48.
Péli, G. (2016). Population adaptation with newcomers and incumbents: The effects of the
organizational niche. Industrial and Corporate Change, 26(1), 103-124.

15
COMPETITIVE STRATEGIES AND ORGANISATIONAL FITNESS
Russell, J. L., Meredith, J., Childs, J., Stein, M. K., and Prine, D. W. (2015). Designing inter-
organizational networks to implement education reform: An analysis of state race to the top
applications. Educational evaluation and policy analysis, 37(1), 92-112.
Taylor, Steven J., Robert Bogdan, and Marjorie DeVault. Introduction to qualitative research
methods: A guidebook and resource. John Wiley & Sons, 2015.
TeBlunthuis, N., Shaw, A., and Hill, B. M. (2017, February). Density Dependence Without
Resource Partitioning: Population Ecology on Change. org. In Companion of the 2017 ACM
Conference on Computer Supported Cooperative Work and Social Computing (pp. 323-326).
ACM.
Weber, M. S., Fulk, J., and Monge, P. (2016). The emergence and evolution of social networking
sites as an organizational form. Management Communication Quarterly, 30(3), 305-332.
Yu, Z. (2016). The effects of resources, political opportunities and organisational ecology on the
growth trajectories of AIDS NGOs in China. VOLUNTAS: International Journal of Voluntary
and Nonprofit Organizations, 27(5), 2252-2273.