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Firm size diversity, functional richness, and resilience

  • DOI:
  • Published online: 13 July 2006

This paper applies recent advances in ecology to our understanding of firm development, sustainability, and economic development. The ecological literature indicates that the greater the functional richness of species in a system, the greater its resilience – that is, its ability to persist in the face of substantial changes in the environment. This paper focuses on the effects of functional richness across firm size on the ability of industries to survive in the face of economic change. Our results indicate that industries with a richness of industrial functions are more resilient to employment volatility.

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The South Carolina Cooperative Fish and Wildlife Research Unit is jointly supported by a cooperative agreement between the United States Geological Survey-Biological Resources Division, the South Carolina Department of Natural Resources, Clemson University, and the Wildlife Management Institute. Support was provided by the James S. McDonnell Foundation 21st Century Research Award/Studying Complex Systems.
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Environment and Development Economics
  • ISSN: 1355-770X
  • EISSN: 1469-4395
  • URL: /core/journals/environment-and-development-economics
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