Once standards of procedures and the allocation of tasks and authority become the subject of normative agreements, the cost of change greatly increas… - Michael T. Hannan

Legitimacy constraints also emanate from the environment. Any legitimacy an organization has been able to generate constitutes an asset in manipulating the environment. To the extent that adaptation (e.g., eliminating undergraduate instruction in public universities) violates the legitimacy claims, it incurs considerable costs. So external legitimacy considerations also tend to limit adaptation.

The existing literature usually stresses the capacity of organizations to learn about and adapt to uncertain, changing environments. We think this emphasis is misplaced. The most important issues about the applicability of evolutionary-ecological theories to organizations concern the timing of changes. Learning and adjusting structure enhance the chance of survival only if the speed of response is commensurate with the temporal patterns of relevant environments.

A population ecology perspective on organization-environment relations is proposed as an alternative to the dominant adaptation perspective. The strength of inertial pressures on organizational structure suggests the application of models that depend on competition and selection in populations of organizations. Several such models, as well as issues arising in attempts to apply them to the organization-environment problem, are discussed.