ABSTRACT

This chapter suggests a different approach that focuses on intra-firm adjustment and firm formation processes in response to changes in the corporate environment. It presents the regional context of CTT, before it discusses the research approach and methodology applied. As intra-firm adjustments and selection processes tend to be slow and suboptimal, the organizational ecology literature argues that firms themselves become the object of market selection. In what follows, we apply this model to the case of CTT as the history and reports about the region's structure show stunning parallels to it. In particular, our goal was to investigate whether our organizational-ecology model that combines firm formation with intra-firm adjustment processes helps to understand the regional growth dynamics in CTT. The research presented in the chapter aims to understand the regional growth dynamics of CTT, a region 100 km west of Toronto, by analyzing its internal and external production and innovation linkages.