Abstract
Drawing on social evolutionary theory, the author uses social behavior and cognition to explain the potential competitive or cooperative actions of a firm, based upon the idea of fitness, as adapted to organizations. The author argues that cognition frames the environment of the firm and the natural selection process in the ecosystem. Five rules of cooperation are examined and propositions presented as to why firms might choose to cooperate rather than compete. In entrepreneurial ecosystems, stakeholders interested in the survival of firms may encourage cooperation among new ventures as a method of utilizing scarce resources to assist a larger number of new ventures than pure competition would allow.
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