SURVIVAL-ENHANCING LEARNING IN THE MANHATTAN HOTEL INDUSTRY, 1898-1980

In this study, we examine how experience at the level of the organizat ion, the population, andthe related group affects the failure of Manha ttan hotels. We find organizational experience has a U-shaped effect o n failure; that organizations enjoy reduced failure as a function of p opulation experience before their founding, but not after; and that re lated organizations provide experience that lowers failure, but it mat ters whether their experience is local or non-local, and if it was acq uired before or after the relationship was established. These results indicate both the difficulty of applying different types of experience to reduce the risk of organizational failure, and the relevance of ex perience for the evolution of organizational populations.