An Ecological Theory of Spatial Evolution: Local Density Dependence in Tokyo Banking, 1894-1936

Organizations exist in a differentiated spatial ecology generated by past foundings and failures and affecting important organizational and individual outcomes. While ecological theory has traditionally emphasized the temporal evolution of organizational populations, this article considers their spatial evolution. Theories of spatial contagion, competition, and density dependence are used to make competing predictions on how geographically delineated subpopulations grow and interact with neighboring subpopulations. The hypotheses are tested on data from the early history of banking in Tokyo, with findings supportive of density dependence within areas and among neighboring areas. This suggests that the spatial evolution of organizational populations is a promising new area for ecological research, with opportunities for better understanding the theoretical and practical problems of spatial clustering and the boundaries of organizational populations.