ABSTRACT

Since Barnard's (1938) and Selzn1ck's (1949) semrnal work, one of the richest streams of research 1n organ1zat1onal theory has centered on organ1zat1on-env1ronment relations (see Starbuck. 1983, for a rev1ew), Recent work on organizational life cycles (Miller and Fnesen. 1984; Tush man and Romanelli, 1985). organizational adaptation (Aidnch and Auster. 1986). population dynamics (Freeman. 1982). execut1ve success1on (Carroll, 1984), and strategy (e_g_, Harrignn. 1983) h1nges on environmentorganization linkages. Env1ronments pose constraints and opportunities for organizational actiOn (Hreb1n1ak and Joyce. 1985)

If organizational outcomes are cnt1cally influenced by the context within which they cccur. then better understanding of organizational dynamics requires that we more fully understand determinants of environmental change_ While there has been substantial research on environmental conditions and organizational relations (see rev1ew in Downey and Ireland. 1979). relatively little research has exarn1ned how competitive environments change over time_ While 1t is agreed that environmental conditions are shaped by compet1t1ve. legal. pol it teal. and technologtcal factors (e.g_, Starbuck. 1983; Romanelli and Tushman. 1986). and the interplay between them (Horwitch, 1982; Noble, 1984), there ts little data on how these factors change over time or how they affect envtronmental conditions_

This paper focuses on technology as a central force 1n shaptng envtronmental conditions_ As technologtcal factors shape appropnate organizattonal forms (McKelvey, 1982). fundamental technological change affects the nse and fall of populattons wtthin organtzational communittes (Astley, 1985)_ Baste technologtcal innovatton affects not only a gtven population, but also those populattons w1th1n technologtcally interdependent communities_ For example. maJor changes rn semtconductor technology affected semtconductor firms as well as computer and automottve firms_ Technology IS, then, an tmportant source of envtronmental vartJtton and hence a cnt1cal factor affecttng population dynamtcs

Thts paper specifically 1nvest1gates patterns of tenhnologtcal change and the1r tmpact on enwonmental conditions_ Building on a considerable body of research on technological change, we argue and emp1ncally demonstrate that patterned changes

m technology dramatically affect environmental conditions. There ex1st measurable patterns of technological change that generate consistent patterns of environmental change over t1me across three diverse mdustrles. While technology IS but one force dnvmg the course of environmental evolution. 1t IS a key building block to better understand how env1ronments and ultimately organ1zat1ons evolve over t1me.