Density dependence in the Chinese construction industry Focus on mortality of Jiangsu Province (1989-2007)

摘要

Purpose - The purpose of this paper is to test the density dependence theory and explain the deep rnchanges that the Chinese construction industry is experiencing. Focusing on both organizational level rnand industry level, it aims to identify the factors and to show how these factors affect the mortality of rnthe Chinese construction companies.rnDesign/methodology/approach - The Jiangsu construction industry is chosen as a proxy of the rnChinese market. With the event history analysis method and life history data on all companies known rnto have operated during the period 1989-2007 in Jiangsu, an expanded Cox model is established to rnachieve the purpose.rnFindings - The construction industry level evolution plays an important role on exit rate of rnconstruction companies; however, this effect does not conform with density dependence as expected,rnand it interacts with organizational age. Besides, age and size of organizational level, and macro rnenvironment also act on mortality.rnResearch limitations/implications - Owing to the difficulty in data acquisition, only 19 years of rnthe Jiangsu construction industry have been reported here, which may not provide the whole picture of rnthe evolution process. Furthermore, the different ending events, such as disbanding and merge, have rnnot been identified, which may affect the results to some extent.rnPractical implications - The paper provides a new perspective to analyze the evolution of the rnChinese construction industry and the mortality of construction companies.rnOriginality/value - This is the first article that applies the density dependence theory to analyze the rnevolution process of the construction industry. It is also the first attempt to analyze the interaction of rndensity, macro factors and organizational age, which is a contribution to the organizational ecology rntheory and the study of construction industry development.