A. Swaminathan, THE PROLIFERATION OF SPECIALIST ORGANIZATIONS IN THE AMERICAN-WINE-INDUSTRY, 1941-1990, Administrative science quarterly, 40(4), 1995, pp. 653-680
To account for the proliferation of specialist organizations as indust
ries mature, this paper examines the relative importance of four proce
sses-density dependence in founding rates, niche formation through cha
nges in consumer preferences, resource partitioning, and direct instit
utional support-to explain the level and dispersion in foundings of sp
ecialist organizations. Analyses of the founding rate of specialist or
ganizations, farm wineries, over 1941-1990 reveal that state-level far
m winery density has the strongest impact on both the level and disper
sion of farm winery foundings. Density effects are followed by the eff
ects of resource partitioning, institutional support, and niche format
ion, in order of level of importance, and by the effects of niche form
ation, institutional support, and resource partitioning, in order of t
he importance to dispersion. The results suggest that factors such as
density dependence and resource partitioning that are endogenous to a
specific population need to be considered in combination with factors
such as niche formation and changes in the institutional environment t
hat are exogenous to the population to account adequately for the prol
iferation of specialist organizations.