In this study, we demonstrate how the ecological and institutional cha
racteristics of organizational niches affect the likelihood of organiz
ational foundings. We describe and measure key ecological, institution
al, organizational, and spatial properties of organizational niches. O
ur theoretical framework emphasizes how the effects of ecological and
institutional processes vary both within and between nonprofit and for
-profit sectors and across levels of geographic aggregation. An analys
is of day care center founding in Metropolitan Toronto supports our ma
in theoretical expectations. Thus studying multiple dimensions indepen
dently and interactively provides a richer, more comprehensive treatme
nt of the context of organizational founding.