A population ecology perspective on organization-environment relations is proposed as an alternative to the dominant adaptation perspective. The stre… - Michael T. Hannan

Hannan and Freeman examine the ecology of organizations by exploring the competition for resources and by trying to account for rates of entry and exit and for the diversity of organizational forms. They show that the destinies of organizations are determined more by impersonal forces than by the intervention of individuals by the intervention of individuals.

Once standards of procedures and the allocation of tasks and authority become the subject of normative agreements, the cost of change greatly increased. Normative agreements constrain adaptation in at least two ways. First, they provide a justification and an organizing principle for those elements that wish to resist reorganization (i.e. they can resist in terms of a shared principle). Second, normative agreements preclude the serious consideration of many alternative responses.

Inertial pressures prevent most organizations from radically changing strategies and structures.