The Evolution of a New Industry ─ A Genealogical Approach

The Evolution of a New Industry traces the emergence and growth of the Israeli hi-tech sector to provide a new understanding of industry evolution.

In the case of Israel, the authors reveal how the hi-tech sector built an entrepreneurial culture with a capacity to disseminate intergenerational knowledge of how to found new ventures, as well as an intricate network of support for new firms. Following the evolution of this industry from embryonic to mature, Israel Drori, Shmuel Ellis, and Zur Shapira develop a genealogical approach that relies on looking at the sector in the way that one might consider a family tree. The principles of this genealogical analysis enable them to draw attention to the dynamics of industry evolution, while relating the effects of the parent companies' initial conditions to their respective corporate genealogies and imprinting potential. The text suggests that genealogical evolution is a key mechanism for understanding the rate and extent of founding new organizations, comparable to factors such as opportunity structures, capabilities, and geographic clusters.

Israel Drori is Professor of Management at the College of Management, Academic Studies in Israel. Shumuel Ellis is Professor of Management and Organizational Behavior in the Leon Recanati Graduate School of Business Administration, Tel Aviv University. Zur Shapira is the William Berkley Professor of Entrepreneurship and Management and Chair of the Department of Management and Organizations at the Stern School of Business, New York University.