An ecological analysis of competition among US communities

Abstract

We apply the ecological concept of the organization's niche pioneered by John Freeman and Mike Hannan to the study of geographic communities. We define a community's market niche by the ties linking a community to the industries on which it depends for growth. We then hypothesize that the extent to which a community's market niche is occupied by other communities is a source of constraint and opportunity depending on the geographical locations of the communities that occupy the same market niche. Geographically distant communities occupying similar market niches are hypothesized to experience primarily constraint arising from competition for opportunities of exchange. Geographically proximate communities occupying similar market niches are hypothesized to face constraint arising from competition for exchange opportunities, as well as opportunity arising from access to valuable resources associated with the existence of similar others. Empirical analyses of firm foundings and exits across US communities support these hypotheses. Implications of our findings for ecological research on the niche and for the literature on communities are discussed.