A genealogical approach to organizational life or chances: The parent-progeny transfer among silicon valley law firms, 1946-1996

Data on Silicon Valley law firms over a 50-year period were used to study the genealogy of organizational populations and its consequences for organizational life chances when a member of an existing firm leaves to found a new firm. Hypotheses and subsequent analysis suggest that the transfer of resources and routines between a parent organization and its progeny decreases life chances for the parent firm and increases life chances h, e for the progeny. The results are contingent on the founder's previous position in the parent firm and time since the parenting event. In addition, I find that progeny have lower life chances when the parent is a failing firm, when there are multiple parents, and when the founder is a former senior partner of a large law firm.